AUTOMATIC AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
(hereinafter called the CEDING COMPANY)
and
GENERAL AMERICAN LIFE INSURANCE COMPANY
St. Louis, Missouri
This Agreement is Effective May 1, 1989
TABLE OF CONTENTS
ARTICLE PAGE
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I AUTOMATIC COVERAGE 1
II FACULTATIVE PROVISIONS 2
III PREMIUMS 3
IV SELF ADMINISTRATION 4
V CONVERSIONS TO COVERED PLAN 6
VI ERRORS AND OMISSIONS 7
VII EXPENSE OF ORIGINAL POLICY 8
VIII CHANGES IN RETENTION AND 9
RECAPTURE PRIVILEGES
IX TERMINATIONS AND REDUCTIONS 10
X REINSTATEMENT, CONTINUATIONS, 11
EXTENDED TERM AND REDUCED PAID-UP INSURANCE
XI LIABILITY 12
XII CLAIMS 13
XIII ARBITRATION 14
XIV INSOLVENCY 16
XV RIGHT TO INSPECT 17
XVI DURATION OF AGREEMENT 18
XVII EXECUTION OF AGREEMENT 19
EXHIBIT
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A RETENTION SCHEDULE
B POLICY PLANS REINSURED
C PREMIUMS
D LIMITS
Reinsurance required by the CEDING COMPANY will be assumed by GENERAL AMERICAN
as described in the terms of this Agreement
ARTICLE I
AUTOMATIC COVERAGE
A. Reinsurance hereunder will be ceded automatically by the CEDING COMPANY on
a quota-share basis. GENERAL AMERICAN'S percentage of participation in each
risk ceded will be as shown in Exhibit D.
B. For each risk on which reinsurance is ceded, the CEDING COMPANY will retain
its full published retention at the time of issue on one of the lives. For
retention purposes existing single life coverage will be taken into account
and the CEDING COMPANY will fill its retention on the healthier life.
C. The CEDING COMPANY may cede and GENERAL AMERICAN will automatically accept
reinsurance, if all of the following conditions are met:
1. The CEDING COMPANY has retained its limit of retention as shown
in Exhibit A.
2. The amount does not exceed the automatic binding limits shown in
Exhibit D.
3. The amount per issue does not exceed the Issue Limit as shown in
Exhibit D.
4. The sum of the amount of insurance already in force and applied
for on each life, in all companies, does not exceed the Jumbo
Limit as shown in Exhibit D.
5. The CEDING COMPANY has not made facultative application for
reinsurance of the current or prior applications on either life
to GENERAL AMERICAN or any other reinsurer.
6. The risk is conventionally underwritten.
7. The Plan is listed in Exhibit B.
8. The issue age for each life does not exceed the limit as shown in
Exhibit D.
1
ARTICLE II
FACULTATIVE PROVISIONS
A. The CEDING COMPANY will have the option to submit any case facultatively
which it does not wish to cede automatically or which it may not cede
automatically under the provisions of Article I.
B. The CEDING COMPANY will send copies of the original applications, all
medical reports, inspection reports, attending physician's statement and
any additional information pertinent to the insurability of the risk.
C. The CEDING COMPANY will also notify GENERAL AMERICAN of any underwriting
information requested or received after the initial request for reinsurance
is made.
D. On a timely basis, GENERAL AMERICAN will submit a written decision. In no
case will GENERAL AMERICAN'S offer on facultative submissions be open after
120 days have elapsed from the date of GENERAL AMERICAN'S offer to
participate in the risk. Acceptance of the offer and delivery of the policy
according to the rules of the CEDING COMPANY must occur within 120 days of
the final reinsurance offer. Unless GENERAL AMERICAN explicitly states in
writing that the final offer is extended, the offer will be automatically
withdrawn at the end of day 120.
E. GENERAL AMERICAN will not be liable for proceeds paid under the CEDING
COMPANY'S conditional receipt or temporary insurance agreement for risks
submitted on a facultative basis.
2
ARTICLE III
YEARLY RENEWABLE TERM PREMIUMS
A. Plans of insurance listed in Exhibit B will be reinsured on the yearly
renewable term basis for the net amount at risk on that portion of the
policy which is reinsured with GENERAL AMERICAN.
B. Reinsurance premiums will be based on the rates as described in Exhibit C.
C. All reinsurance premiums paid to GENERAL AMERICAN by the CEDING COMPANY
shall be subject to a state premium tax reimbursement. The method of
calculating the state premium tax reimbursement shall be to determine an
average tax rate paid by the CEDING COMPANY, and then to apply this tax
rate against the reinsurance premiums paid. Such tax rate shall be the
ratio of total state premium taxes paid to total ordinary premiums received
by the CEDING COMPANY. State premium tax reimbursement shall continue to be
paid annually, so long as the current method of paying state premium taxes
remains unchanged.
D. For technical reasons, the Life reinsurance rates cannot be guaranteed for
more than one year. However, GENERAL AMIERCAN anticipates continuing to
accept premiums on the basis of the rates as described in Exhibit C for
reinsurance ceded at these rates.
3
ARTICLE IV
SELF ADMINISTRATION
A. The CEDING COMPANY will administer the records for the reinsurance ceded to
GENERAL AMERICAN under this agreement. The CEDING COMPANY will furnish
monthly statements to GENERAL AMERICAN which contain at least the following
information:
1. A list of all premiums due for the current month, identifying
each policy and explaining the reasons for each premium payment.
2. Premium subtotals adequate for GENERAL AMERICAN to use for its
premium accounting.
3. A list of new business, terminations and changes for the current
month. For new business and changes, the CEDING COMPANY must
identify the reinsurance agreement and provide information
adequate for GENERAL AMERICAN to establish reserves, check
retention limits and check premium calculations.
4. Totals for inforce, new business, changes and each type of
termination, as of the end of the month. "Totals" refer to the
number of policies reinsured, amount at risk reinsured and
annualized reinsurance premiums.
In addition, the CEDING COMPANY must provide GENERAL AMERICAN with an
inforce listing of reinsured business at least once a year. This inforce
listing must contain information adequate for GENERAL AMERICAN to audit its
inforce records.
B. The monthly statements shall be furnished to GENERAL AMERICAN within thirty
days following the close of each month and will be accompanied by payment
of any net amount due GENERAL AMERICAN as shown on the monthly statement.
All premiums not paid within thirty (30) days of the due date will be in
default.
C. GENERAL AMERICAN reserves the right to charge interest on a monthly basis
at an annual rate of 8% when:
1. Renewal premiums are not paid within sixty (60) days of the due
date.
2. Premiums for new business are not paid within one hundred twenty
(120) days of the effective date of the policy
4
D. Subject to the provisions of Article VIII, GENERAL AMERICAN will have the
right to terminate this Agreement when premiums are in default by giving
ninety (90) days written notice of termination to the CEDING COMPANY. As of
the close of the last day of this ninety (90) day notice period, GENERAL
AMERICAN'S liability for all risks reinsured under this agreement will
terminate. The first day of the ninety (90) day notice of termination under
Section B of this Article will be the day the notice is received in the
mail by the CEDING COMPANY or if the mail is not used, the day it is
delivered to the CEDING COMPANY. If all premiums in default are received
within the ninety (90) day time period, the Agreement will remain in
effect.
E. Payments between the CEDING COMPANY and GENERAL AMERICAN may be paid net of
any amount due and unpaid under all reinsurance agreements between both
parties.
5
ARTICLE V
CONVERSIONS TO COVERED PLAN
A. Exiting CEDING COMPANY term plans and riders may be converted to the plan
covered by this Agreement. Premiums will be based on a point-in-scale
transfer to the premium basis covered in Article III and Exhibit C of this
Agreement, based on the original issue date of the term product being
converted.
B. If neither of the existing term products was reinsured, GENERAL AMERICAN
will receive its Exhibit D percentage of participation in the reinsurance
of the new policy.
C. If either of the existing term policies was reinsured, all prior
reinsurance on those policies will be cancelled with the reinsuring
companies and GENERAL AMERICAN will receive its percentage of participation
in the total reinsurance on the new policy on a point-in-scale basis.
6
ARTICLE VI
ERRORS AND OMISSIONS
If either the CEDING COMPANY or GENERAL AMERICAN fails to perform an obligation
that affects this Agreement and such failure results in an error on the part of
the CEDING COMPANY or GENERAL AMERICAN, the error will be corrected by restoring
both the CEDING COMPANY and GENERAL AMERICAN to the positions they would have
occupied had no such error occurred.
7
ARTICLE VII
EXPENSE OF ORIGINAL POLICY
The CEDING COMPANY will bear the expense of all medical examinations, inspection
fees and other charges incurred in connection with the original policy.
8
ARTICLE VIII
CHANGES IN RETENTION AND RECAPTURE PRIVILEGES
A. If, at any time, the CEDING COMPANY changes its existing retention limits,
as shown in Exhibit A, written notice of the change will promptly be given
to GENERAL AMERICAN.
B. The CEDING COMPANY may apply the new limits of retention to existing
reinsurance and reduce and recapture reinsurance in force in accordance
with the following rules:
1. No recapture will be made unless reinsurance has been in force
twenty (20) years.
2. Recapture will become effective on the policy anniversary date
following notification of the company's intent to recapture.
3. If any reinsurance is recaptured all reinsurance eligible for
recapture under the provisions of this Article must be
recaptured.
4. If there is reinsurance in other companies in risks eligible for
recapture, the necessary reduction is to be applied to each
company in proportion to the total outstanding reinsurance.
9
ARTICLE IX
TERMINATIONS & REDUCTIONS
A. Terminations or reductions will take place in accordance with the following
rules, in order of priority:
1. The CEDING COMPANY must keep its retention on the policy.
2. Termination or reduction of a wholly reinsured policy will not
affect other reinsurance in force.
3. A termination or reduction on a wholly retained case will cause
an equal reduction in existing reinsurance with the oldest policy
being reduced first.
4. A termination or reduction will be made first to reinsurance of
partially reinsured policies with the oldest policy being reduced
first.
5. If the policies are reinsured with multiple reinsurers, the
reinsurance will be reduced by the ratio of the amount of
reinsurance in each company to the total outstanding reinsurance
on the risk involved.
B. Whenever the amount of reinsurance on a policy under this Agreement reduces
to $10,000 or less, the reinsurance will be wholly recaptured.
10
ARTICLE X
REINSTATEMENT, CONTINUATIONS, EXTENDED TERM
AND REDUCED PAID-UP INSURANCE
A. Any policy originally reinsured in accordance with the terms and conditions
of this Agreement by the CEDING COMPANY may be automatically reinstated
with GENERAL AMERICAN so long as the policy is reinstated in accordance
with the terms and rules of the CEDING COMPANY. Any policy originally
reinsured with GENERAL AMERICAN on a facultative basis which has been in a
lapsed status for more than ninety (90) days must be submitted with
underwriting requirements and approved by GENERAL AMERICAN before it is
reinstated. The CEDING COMPANY will pay GENERAL AMERICAN its share of
amounts collected or charged for the reinstatement of such policy.
B. A continuation is a new policy replacing a policy issued earlier by the
CEDING COMPANY or a change in an existing policy that is issued or made
either:
1. Under the terms of the original policy, or
2. Without the same new underwriting information the CEDING COMPANY
would obtain in the absence of the original policy, or
3. Without a suicide exclusion period or contestable period of equal
duration to those contained in new issues by the CEDING COMPANY,
or
4. Without the payment of the same commissions in the first year
that the CEDING COMPANY would have paid in the absence of the
original policy.
C. Continuations will be reinsured under this Agreement only if the original
policy was reinsured with GENERAL AMERICAN; the amount of reinsurance under
this Agreement will not exceed the amount of the reinsurance of the
original policy with GENERAL AMERICAN immediately prior to the
continuation.
D. Changes as a result of extended term or reduced paid-up insurance will be
handled like reductions.
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ARTICLE XI
LIABILITY
A. This is an Agreement solely between GENERAL AMERICAN and the CEDING
COMPANY. In no instance will anyone other than GENERAL AMERICAN or the
CEDING COMPANY have any rights under this Agreement, and the CEDING COMPANY
will be and remain solely liable to any insured, policyowner, or
beneficiary under any policy reinsured hereunder.
B. The liability for all automatic reinsurance accepted by GENERAL AMERICAN
under this Agreement will commence simultaneously with that of the CEDING
COMPANY.
C. GENERAL AMERICAN will not be liable for proceeds paid under the CEDING
COMPANY'S conditional receipt or temporary insurance agreement unless
conditions for automatic coverage under Article I of this Agreement are
met.
D. Liability for all reinsurance submitted facultatively to GENERAL AMERICAN
will commence when all of the following conditions have been met:
1. GENERAL AMERICAN'S offer has been accepted and the CEDING COMPANY
has properly documented its records to reflect this acceptance,
and
2. The policy has been delivered and paid for in accordance with the
CEDING COMPANY'S procedures, and
3. No more than one-hundred twenty (120) days have elapsed from the
date of GENERAL AMERICAN'S final offer unless GENERAL AMERICAN
explicitly states in writing that the final offer is extended for
some further period of time.
E. The liability of GENERAL AMERICAN for all reinsurance under this Agreement
will cease simultaneously with the liability of the CEDING COMPANY and will
not exceed the CEDING COMPANY'S contractual liability under the terms of
its policies.
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ARTICLE XII
CLAIMS
A. Prompt notice of a claim must be given to GENERAL AMERICAN. In every case
of loss, copies of the proofs obtained by the CEDING COMPANY will be taken
by GENERAL AMERICAN as sufficient. Copies thereof together with proof of
the amount paid on such claim by the CEDING COMPANY will be furnished to
GENERAL AMERICAN when requesting its share of the claim. However, if the
amount reinsured with GENERAL AMERICAN is more than the amount retained by
the CEDING COMPANY and the claim is contestable, all papers in connection
with such claim, including all underwriting and investigation papers, must
be submitted to GENERAL AMERICAN for its recommendation before admission of
any liability on the part of the CEDING COMPANY.
B. The CEDING COMPANY will notify GENERAL AMERICAN of its intention to
contest, compromise or litigate a claim. Unless it declines to be a party
to such action, GENERAL AMERICAN will pay its share of any settlement up to
the maximum that would have been payable under the specific policy had
there been no controversy plus its share of specific expenses, except as
specified below.
If GENERAL AMERICAN declines to be a 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, and its
proportionate share of covered expenses incurred to the date it notifies
the CEDING COMPANY it declines to be a party.
In no event will the following categories of expenses or liabilities be
reimbursed:
1. Routine investigative or administrative expenses;
2. Salaries of employees or other internal expenses of the CEDING
COMPANY or the original issuing company;
3. Extra contractual damages including punitive and exemplary
damages based on actual bad faith, failure to exercise good faith
or tortuous conduct of the CEDING COMPANY;
4. Expenses incurred in connection with a dispute or contest arising
out of conflicting or any other claims of entitlement to policy
proceeds or benefits.
In determining the existence of actual bad faith, failure to exercise good
faith or tortuous conduct of the CEDING COMPANY, the parties shall not be
required to follow the reason indicated by the court which awarded such
damages. Rather, the parties shall act in good faith to determine the
actual reason for the award.
C. If the amount of insurance changes because of a misstatement of rate
classification, GENERAL AMERICAN'S share of reinsurance liability will
change proportionately.
D. For approved Waiver of Premium benefit claims, GENERAL AMERICAN will pay
the CEDING COMPANY its portion of the amount of gross premiums waived by
the CEDING COMPANY.
13
ARTICLE XIII
ARBITRATION
A. It is the intention of GENERAL AMERICAN and the CEDING COMPANY 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
GENERAL AMERICAN or the CEDING COMPANY cannot mutually resolve a dispute
which arises out of or relates to this Agreement, however, the dispute will
be decided through arbitration. The arbitrators will base their decision on
the terms and conditions of this Agreement plus, as necessary, on the
customs and practices of the insurance and reinsurance industry rather than
solely on a strict interpretation of the applicable law; there will be no
appeal from their decision, and any court having jurisdiction of the
subject matter and the parties may reduce that decision to judgment.
B. To initiate arbitration, either the CEDING COMPANY or GENERAL AMERICAN 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. 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 sixty days, the other party may appoint the
second arbitrator. If the two arbitrators do not agree on a third
arbitrator within sixty days of their appointment then either party may
apply to the court, pursuant to Section 3 of the Uniform Arbitration Act,
for appointment of a third arbitrator.
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. Therefore, at no time will either the CEDING
COMPANY or GENERAL AMERICAN contact or otherwise communicate with any
person who is to be or has been designated as a candidate to serve as a
joint drafted communications provided by both the CEDING COMPANY and
GENERAL AMERICAN to inform the arbitrators of the nature and facts of the
dispute. Likewise, any written or oral arguments provided to the
arbitrators concerning the dispute will be coordinated with the other party
and will be provided simultaneously to the other party or will take place
in the presence of the other party. Further, at no time will any arbitrator
be informed that the arbitrator has been named or chosen by one party or
the other.
E. The arbitration hearing will be held on the date fixed by the arbitrators.
In no event will this date be later than six (6) 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 it 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. The
party initiating the arbitration will have the burden of proving its case
by a preponderance of the evidence. Each party may examine any witnesses
who testify at the arbitration hearing.
14
F. The cost of arbitration will be borne by the losing party unless the
arbitrators decide otherwise.
15
ARTICLE XIV
INSOLVENCY
A. In the event of the insolvency of the CEDING COMPANY, all reinsurance will
be payable directly to the liquidator, receiver, or statutory successor of
the CEDING COMPANY without diminution because of the insolvency of the
CEDING COMPANY.
B. In the event of insolvency of the CEDING COMPANY, the liquidator, receiver
or statutory successor will immediately give written notice to GENERAL
AMERICAN of all pending claims against the CEDING COMPANY on any policies
reinsured. While a claim is pending, GENERAL AMERICAN may investigate 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
expense incurred by GENERAL AMERICAN 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 GENERAL
AMERICAN. Where two or more reinsurers are participating in the same claim
and a majority in interest elect to interpose a defense or defenses to any
such claim, the expense will be apportioned in accordance with the terms of
the insurance agreement as though such expense had been incurred by the
CEDING COMPANY.
C. Any debts or credits, matured or unmatured, liquidated or unliquidated, in
favor of or against either GENERAL AMERICAN or the CEDING COMPANY with
respect to this Agreement or with respect to any other claim of one party
against the other are deemed mutual debts or credits, as the case may be,
and will be offset, and only the balance will be allowed or paid.
16
ARTICLE XV
RIGHT TO INSPECT
GENERAL AMERICAN may at all reasonable times inspect the CEDING COMPANY'S
original papers, records, books, files, etc., relating to the business under
this Agreement.
17
ARTICLE XVI
DURATION OF AGREEMENT
A. This Agreement may be terminated as to new reinsurance at any time by
either party giving ninety (90) days written notice of termination. The day
the notice is mailed to the other party's Home Office, or, if the mail is
not used, the day it is delivered to the other party's Home Office or to an
Officer of the other party will be the first day of the ninety (90) day
period.
B. During the ninety (90) day period, this Agreement will continue to operate
in accordance with its terms.
C. GENERAL AMERICAN and the CEDING COMPANY will remain liable after
termination, in accordance with the terms and conditions of this Agreement,
with respect to all reinsurance effective prior to termination of this
Agreement.
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ARTICLE XVII
EXECUTION OF AGREEMENT
IN WITNESS OF THE ABOVE,
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
of
Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY
of
St. Louis, Missouri,
have by their respective officers executed and delivered this Agreement in
duplicate on the dates indicated below, with an effective date of May 1, 1989.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: February 26, 1991
------------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Executive Vice President Title: Sales Vice President
------------------------------ -------------------------------
Date: Jan. 21, 1991
------------------------------
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EXHIBIT A
RETENTION SCHEDULE
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
X,X,X & X, XXX X, X & X, XXX X, L & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF FLAT EXTRAS OF
AGES $10.00 OR LESS (a) $10.01 - $20.00 (b) $20.01 AND OVER
---- ------------------ ------------------- ---------------
0 $ 400,000 $200,000 $100,000
1 - 17 800,000 600,000 200,000
18 - 60 1,000,000 700,000 400,000
61 - 70 700,000 500,000 200,000
71 - 75 300,000 200,000 100,000
76 - 80 200,000 100,000 50,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and Term Riders not available above Class B.
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) There are conditions where the retention may be limited, such as
in aviation, Armed Forces personnel, certain avocations, and
medical classifications.
(3) The minimum size reinsurance case will be $25,000.
CIVILIAN AVIATION:
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company owned business planes
To 200 hours annually Standard $1,000,000
Over 200 hours annually Individual Consideration* 500,000
Charter Flying
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* 300,000
Private business or pleasure
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* 300,000
Pilots and Crew Members $ 300,000
*Require complete details of type of plans and equipment, flying terrain
and qualifications of pilots.
1
ARMED FORCES:
Active Duty personnel, Reserves alerted, National Guard alerted, ROTC final
college year, West Point Cadets, Annapolis Midshipmen, Air Force and Coast
Guard Academy Cadets
AGES OFFICERS ENLISTED PERSONNEL*
---- -------- -------------------
24 and Under $100,000 $ 50,000
25 and Over $150,000 $100,000
(Submarine Service, Hazardous
Special Services, Paratroopers
and Airborne Infantry are not
eligible.)
Doctors, Dentists, Allied Specialists $200,000 ----------
Civilian participants in Reserve
Programs entering on active duty for
up to six months only, with remaining
military service obligation to be
completed in Ready Reserve
All ages $150,000 $100,000
*Enlisted Personnel (Pay Grades E-1 through E-3 are not eligible).
CORONARY HISTORY: When a combination Table and Flat Extra rating is
necessary.
AGES RETENTION
---- ---------
60 and Under $300,000
61 - 70 150,000
71 - 80 50,000
WAIVER OF PREMIUM DISABILITY AND ACCIDENTAL DEATH BENEFITS
Full retained
2
EXHIBIT B
POLICY PLANS REINSURED
Effective May 1, 1989
JOINT AND LAST SURVIVOR
EXHIBIT C
PREMIUMS
JOINT AND LAST SURVIVOR
BOTH LIVES REINSURED
The basis for figuring the premiums payable for this coverage will be as
described below:
1. Joint and Last Survivor premium rates are attached as Tables
C-1A, C-1B, and C-1C. These rates have been calculated from
Single Life Mortality Rates with the result increased by 20 cents
per thousand to cover simultaneous accidental deaths, reinsurance
expenses and the reserving of capacity.
2. The Joint and Last Survivor premium rates are pre-calculated for
two male nonsmokers (C-1A), two male smokers (C-1B) and a male
smoker/nonsmoker combination (C-1C), using a joint equal age
approach. Table C-2 will be used to convert two single ages to a
joint equal age. A five year setback will be used for female
lives.
3. A rate-up in age from Tables C-3 and C-4 will be used to handle
table ratings (C-3) and flat extras (C-4).
The steps to be used for finding the proper rate are as follows:
1. Apply the five-year setback to change the female ages to male
ages.
2. Use Tables C-3 and C-4 to rate up male ages for table ratings and
flat extras.
3. Use Table C-2 to determine the joint equal age, with the age
difference based on the ages resulting from steps 1 and 2.
4. Use the joint equal age to find the proper Joint and Last
Survivor premium rate from the applicable C-1 table (C-1A for
NS/NS, C-1B for S/S or C-1C for S/NS).
ONE LIFE REINSURED
When one of the lives is uninsurable, the premiums for the reinsured life
will be on the basis of the rates shown in Table C-5, based on the age and
sex of the single live being reinsured.
The premium will be increased by any flat extra premium charged the insured
on the face amount initially reinsured, less total allowances in the amount
of 100% of any first year permanent (payable 6 years or more) extra or 20%
of any first year temporary flat extra premium, and 20% of any renewal flat
extra premium.
JOINT AND LAST SURVIVOR (Cont'd.)
For each case reinsured, GENERAL AMERICAN will receive a policy fee of
$25.00 each year in addition to the rates as described in this exhibit.
EXCHANGE OPTION RIDER
EXCHANGE OPTION
The consideration payable for reinsurance of the Exchange Option Rider will
be based on the rates shown in Tables C-6.
OPTION POLICIES
At the exercise of the Exchange Option, the premiums will be based on a
point in scale transfer to the premium basis described in the reinsurance
treaty document covering the plan involved, measured from the issue date of
the original Joint and Last Survivor policy.
JOINT AND LAST SURVIVOR PREMIUM RATES
Omitted 37 Pages
EXHIBIT D
LIMITS
GENERAL AMERICAN'S PARTICIPATION PERCENTAGE
GENERAL AMERICAN'S participation percentage for each risk reinsured shall
be as shown below:
33-1/3%
AUTOMATIC BINDING LIMIT
The CEDING COMPANY agrees not to automatically bind GENERAL AMERICAN when
the amount to be ceded to GENERAL AMERICAN exceeds the following limit:
$2,000,000
ISSUE LIMIT
The amount issued on any case ceded automatically shall not exceed the
following limit:
$7,000,000
JUMBO LIMIT
A Jumbo risk is one where the amount of insurance already in force and
applied for on the risk in all companies exceeds the following limit:
$15,000,000
ISSUE AGE LIMIT
Each of the lives must be age 80 or less.
648-0-1
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED May 1,1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective September 1, 1990
I. ADDITION OF EXCEPTIONAL ADVANTAGE PLAN
This Agreement is hereby amended through the addition of the following plan
which shall be covered by it effective September 1, 1990:
EXCEPTIONAL ADVANTAGE
Exhibit B of this Agreement is hereby replaced by the attached Exhibit B,
effective September 1, 1990 which now includes the above plan in the list
of plans covered.
The cover pages for Exhibit C are hereby replaced by the attached Exhibit C
cover pages and the attached rate tables marked C-7 and C-8 are hereby
added to Exhibit C.
Survivor Benefit term insurance will be provided on the surviving insured
for a period of 90 days beginning on the date of death of the first to die.
The amount of the term insurance benefit will be the face amount of the
policy as of the date of death of the first to die. There is no direct or
reinsurance premium for this benefit.
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: April 2, 1991
------------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Sales Vice President Title: Executive Vice President
------------------------------ -------------------------------
Date: March 29, 1991
------------------------------
EXHIBIT B
POLICY PLANS REINSURED
EFFECTIVE DATE
May 1, 1989 JOINT AND LAST SURVIVOR
September 1, 1990 EXCEPTIONAL ADVANTAGE
(Rev. 9-90)
EXHIBIT C
PREMIUMS
JOINT AND LAST SURVIVOR
BOTH LIVES REINSURED
The basis for figuring the premiums payable for this coverage will be as
described below:
1. Joint and Last Survivor premium rates are attached as Tables
C-1A, C-1B, and C-1C. These rates have been calculated from
Single Life Mortality Rates with the result increased by 20 cents
per thousand to cover simultaneous accidental deaths, reinsurance
expenses and the reserving of capacity.
2. The Joint and Last Survivor premium rates are pre-calculated for
two male nonsmokers (C-1A), two male smokers (C-1B) and a male
smoker/nonsmoker combination (C-1C), using a joint equal age
approach. Table C-2 will be used to convert two single ages to a
joint equal age. A five year setback will be used for female
lives.
3. A rate-up in age from Tables C-3 and C-4 will be used to handle
table ratings (C-3) and flat extras (C-4).
The steps to be used for finding the proper rate are as follows:
1. Apply the five-year setback to change the female ages to male
ages.
2. Use Tables C-3 and C-4 to rate up male ages for table ratings and
flat extras.
3. Use Table C-2 to determine the joint equal age, with the age
difference based on the ages resulting from steps 1 and 2.
4. Use the joint equal age to find the proper Joint and Last
Survivor premium rate from the applicable C-1 table (C-1A for
NS/NS, C-1B for S/S or C-1C for S/NS).
ONE LIFE REINSURED
When one of the lives is uninsurable, the premiums for the reinsured life
will be on the basis of the rates shown in Table C-5, based on the age and
sex of the single live being reinsured.
The premium will be increased by any flat extra premium charged the insured
on the face amount initially reinsured, less total allowances in the amount
of 100% of any first year permanent (payable 6 years or more) extra or 20%
of any first year temporary flat extra premium, and 20% of any renewal flat
extra premium.
(Rev. 9-90)
JOINT AND LAST SURVIVOR (Cont'd.)
For each case reinsured, GENERAL AMERICAN will receive a policy fee of
$25.00 each year in addition to the rates as described in this exhibit.
EXCHANGE OPTION RIDER
EXCHANGE OPTION
The consideration payable for reinsurance of the Exchange Option Rider will
be based on the rates shown in Tables C-6.
OPTION POLICIES
At the exercise of the Exchange Option, the premiums will be based on a
point in scale transfer to the premium basis described in the reinsurance
treaty document covering the plan involved, measured from the issue date of
the original policy.
EXCEPTIONAL ADVANTAGE
The basis for figuring the premiums payable for this coverage will be
determined according to the amount reinsured per insured life as follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
1. The reinsurance premium for each life covered under a policy will
be based on the appropriate rate from the attached Table C-7,
multiplied by the following percentages:
POLICY YEAR AUTOMATIC FACULTATIVE
----------- --------- -----------
1 0% 0%
2 - 10 63% 76%
11 & After 80% 80%
For substandard table ratings, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year
temporary flat extra premium, and 20% of any renewal flat extra
premium.
Increases in the death benefit that are underwritten in
accordance with the CEDING COMPANY'S usual underwriting standards
for individually selected risks for new issues will be treated as
new business and the percentages will recommence at the first
year.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to GENERAL AMERICAN on the policy.
(Rev. 9-90)
EXCEPTIONAL ADVANTAGE (Cont'd.)
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
1. Premiums for live reinsurance of amounts in excess of $3,000,000
per insured life will be based on the rates shown in Table C-8.
Flat extra premiums will be on the same basis as described above.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to GENERAL AMERICAN on the policy.
(Rev. 9-90)
CURRENT MORTALITY CHARGES PER $1,000 NET AMOUNT AT RISK
Omitted 12 Pages
648-0-3
AUTOMATIC REINSURANCE AGREEMENT DATED May 1,1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective May 1, 1989
I. BINDING ON SPECIAL AUTOMATIC CASES
Article I of this Agreement is hereby replaced by the attached Article I
which now includes the following paragraph:
"D. If the CEDING COMPANY retains less than its maximum retention, as
shown in Exhibit A, GENERAL AMERICAN shall accept automatically
reinsurance in an amount not to exceed the amount retained by the
CEDING COMPANY on the current application. This type of automatic
reinsurance will be know as special automatic."
Exhibit D of this Agreement is hereby replaced by the attached Exhibit D
which now includes the binding limit applicable on special automatic cases.
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: February 4, 1992
------------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Sales Vice President Title: Executive Vice President
------------------------------ -------------------------------
Date: January 27, 1992
------------------------------
Reinsurance required by the CEDING COMPANY will be assumed by GENERAL AMERICAN
as described in the terms of this Agreement.
ARTICLE I
AUTOMATIC COVERAGE
A. Reinsurance hereunder will be ceded automatically by the CEDING COMPANY on
a quota-share basis. GENERAL AMERICAN'S percentage of participation in each
risk ceded will be as shown in Exhibit D.
B. For each risk on which reinsurance is ceded, the CEDING COMPANY will retain
its full published retention at the time of issue on one of the lives. For
retention purposes existing single life coverage will be taken into account
and the CEDING COMPANY will fill its retention on the healthier life.
C. The CEDING COMPANY may cede and GENERAL AMERICAN will automatically accept
reinsurance, if all of the following conditions are met:
1. The CEDING COMPANY has retained its limit of retention as shown
in Exhibit A.
2. The amount does not exceed the automatic binding limits shown in
Exhibit D.
3. The amount per issue does not exceed the Issue Limit as shown in
Exhibit D.
4. The sum of the amount of insurance already in force and applied
for on each life, in all companies, does not exceed the Jumbo
Limit as shown in Exhibit D.
5. The CEDING COMPANY has not made facultative application for
reinsurance of the current or prior applications on either life
to GENERAL AMERICAN or any other reinsurer.
6. The risk is conventionally underwritten.
7. The Plan is listed in Exhibit B.
8. The issue age for each life does not exceed the limit as shown in
Exhibit D.
D. If the CEDING COMPANY retains less than its maximum retention, as shown in
Exhibit A, GENERAL AMERICAN shall accept automatically reinsurance in an
amount not to exceed the amount retained by the CEDING COMPANY on the
current application. This type of automatic reinsurance will be known as
special automatic.
EXHIBIT D
LIMITS
GENERAL AMERICAN'S PARTICIPATION PERCENTAGE
GENERAL AMERICAN'S participation percentage for each risk reinsured shall
be as shown below:
33-1/3%
AUTOMATIC BINDING LIMIT
The CEDING COMPANY agrees not to automatically bind GENERAL AMERICAN when
the amount to be ceded to GENERAL AMERICAN exceeds the following limits:
Regular Retention cases: $2,000,000
Special Automatic cases: Binding limit equal to amount
retained by the CEDING COMPANY
ISSUE LIMIT
The amount issued on any case ceded automatically shall not exceed the
following limit:
$7,000,000
JUMBO LIMIT
A Jumbo risk is one where the amount of insurance already in force and
applied for on the risk in all companies exceeds the following limit:
$15,000,000
ISSUE AGE LIMIT
Each of the lives must be age 80 or less.
648-0-4
AMENDMENT TO THE
AUTOMATIC AGREEMENT Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
GENERAL AMERICAN LIFE INSURANCE COMPANY
St. Louis, Missouri
This Amendment is Effective January 1, 1993
I. RETENTION LIMITS
Effective for policies dated January 1, 1993, and thereafter, the Exhibit A
schedule of Retention Limits is hereby replaced by the attached Exhibit A
(Rev. 1-1-93).
II. REVISED PREMIUMS
Effective for policies dated January 1, 1993, and thereafter, the Exhibit
C-8 rates are hereby replaced by the attached Exhibit C-8 (Rev. 1-1-93)
rates.
III. All provisions of the
Automatic Agreement not amended herein remain
unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: August 6, 1993
------------------------------
GENERAL AMERICAN LIFE INSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Vice President, Sales Title: Executive Vice President
------------------------------ -------------------------------
Date: 7/30/93
------------------------------
EXHIBIT A
STATE MUTUAL OF AMERICA RETENTION SCHEDULE
Effective January 1, 1993
LIFE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES
A THROUGH H AND J, L & P, AND
FLAT EXTRAS OF FLAT EXTRAS OF
AGES $20.00 OR LESS $20.01 AND OVER
---- -------------- ---------------
0 $ 500,000 $ 250,000
1 - 60 2,000,000 1,000,000
61 - 70 1,000,000 500,000
71 - 80 500,000 250,000
NOTES: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) The minimum size reinsurance case will be $50,001.
AVIATION
Any situation involving aviation will use a $500,000 retention.
WAIVER OF PREMIUM DISABILITY & ACCIDENTAL DEATH BENEFITS
Fully retained
(Rev. 1-1-93)
GENERAL AMERICAN LIFE INSURANCE COMPANY
M-500 Smoker Rates
Omitted 8 Pages
DAC TAX
AMENDMENT
This Amendment, effective January 1, 1991, between STATE MUTUAL LIFE ASSURANCE
COMPANY (referred to as Ceding Company; Reinsured; you, your), and GENERAL
AMERICAN LIFE INSURANCE COMPANY (referred to as General American; Reinsurer; we,
us, our) hereby amends and becomes a part of the following Reinsurance
Agreement(s).
DOC. NO. EFFECTIVE DATE DESCRIPTION
473 01-JAN-83 AUTOMATIC/FACULTATIVE AGREEMENT
474 01-AUG-83 FACULTATIVE AGREEMENT
475 01-AUG-83 FACULTATIVE AGREEMENT (SMA LIFE'S EXCEPTIONAL LIFE)
476 01-MAR-85 JX 20 TREATY (DIRECT/RETRO)
477 01-JUL-86 AUTOMATIC/FACULTATIVE AGREEMENT
478 01-MAR-85 JX25 FACULTATIVE AGREEMENT
479 01-JAN-87 AUTOMATIC/FACULTATIVE AGREEMENT
480 01-JAN-87 AUTOMATIC/FAC. AGREEMENT (EXECTERM II, FLEXTERM)
648 01-MAY-89 AUTOMATIC/FACULTATIVE AGREEMENT
1. The attached DAC Tax Article, entitled Section 1.848-2(g)(8) Election, is
hereby added to the Agreement.
2. This Amendment does not alter, amend or modify the Reinsurance Agreement
other than as stated in this Amendment. It is subject to all of the terms
and conditions of the Reinsurance Agreement together with all Amendments
and Addendums.
Executed in duplicate by GENERAL AMERICAN LIFE INSURANCE COMPANY at St. Louis,
Missouri, on March 22, 1993.
By: /s/
------------------------------
Title: Executive Vice President
Executed in duplicate by STATE MUTUAL LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: July 20, 1993
------------------------------
DAC TAX ARTICLE
TREASURY REG. 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 29th, 1992,
under Section 848 of the Internal Revenue Code of 1986, as amended. This
election shall be effective for the 1991 taxable year for all amounts of
consideration arising after November 14, 1991 and for all subsequent taxable
years for which this Agreement remains in effect.
1. The term "party" will refer to either the Ceding Company or the Reinsurer
as appropriate.
2. The terms used in this Article are defined by reference to Treasury
Regulation Section 1.848-2 in effect as of December 29th, 1992. The term
"net consideration" will refer to either net consideration as defined in
Treasury Reg. Section 1.848-2(f) or "gross premium and other consideration"
as defined in Treasury Reg. Section 1.848-3(b) as appropriate.
3. 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 deductions
limitation of IRC Section 848(c)(1).
4. The Ceding Company and Reinsurer agree to exchange information pertaining
to the amount of net consideration under this Agreement each year to ensure
consistency. The Ceding Company and the Reinsurer also agree to exchange
information which may be otherwise required by the IRS.
5. The Ceding Company will submit a schedule to the Reinsurer by June 1 of
each year of its calculation of the net consideration for the preceding
calendar year. This schedule of calculations 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.
6. The Reinsurer may contest such calculation by providing an alternative
calculation to the Ceding Company in writing within 30 days of the
Reinsurer's receipt of the Ceding Company's calculation. If the Reinsurer
does not so 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.
7. 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 alternative calculation. If the Ceding Company and the
Reinsurer reach agreement on an amount of net consideration, each party
shall report such amount in their respective tax returns for the previous
calendar year.
This Amendment, effective on the original Document Date, between STATE MUTUAL
LIFE ASSURANCE COMPANY (referred to as Ceding Company; Reinsured; you, your),
and GENERAL AMERICAN LIFE INSURANCE COMPANY (referred to as General American;
Reinsurer; we, us, our) hereby amends and becomes a part of the following
Reinsurance Agreement(s).
DOC. NO. EFFECTIVE DATE DESCRIPTION
473 01-JAN-83 AUTOMATIC/FACULTATIVE AGREEMENT
474 01-AUG-83 FACULTATIVE AGREEMENT
475 01-AUG-83 FACULTATIVE AGREEMENT (SMA LIFE'S EXCEPTIONAL LIFE)
476 01-MAR-85 JX 20 TREATY (DIRECT/RETRO)
477 01-JUL-86 AUTOMATIC/FACULTATIVE AGREEMENT
478 01-MAR-85 JX25 FACULTATIVE AGREEMENT
479 01-JAN-87 AUTOMATIC/FACULTATIVE AGREEMENT
480 01-JAN-87 AUTOMATIC/FAC. AGREEMENT (EXECTERM II, FLEXTERM)
648 01-MAY-89 AUTOMATIC/FACULTATIVE AGREEMENT
1. This amendment provides that:
A. The reinsurance agreement shall constitute the entire agreement
between the parties with respect to the business being reinsured
thereunder and that there are no understandings between the parties
other than as expressed in the agreement; and
B. Any change or modification to the agreement shall be null and void
unless made by amendment to the agreement and signed by both parties.
2. This Amendment does not alter, amend or modify the Reinsurance Agreement
other than as stated in this Amendment. It is subject to all of the terms
and conditions of the Reinsurance Agreement together with all Amendments
and Addendums.
Executed in duplicate by GENERAL AMERICAN LIFE INSURANCE COMPANY at St. Louis,
Missouri, on March 22, 1993.
By: /s/
------------------------------
Title: Executive Vice President
Executed in duplicate by STATE MUTUAL LIFE ASSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: July 20, 1993
------------------------------
AMENDMENT TO REINSURANCE AGREEMENTS
between
STATE MUTUAL LIFE ASSURANCE COMPANY, WORCESTER, MASSACHUSETTS
(hereinafter referred to as "THE CEDING COMPANY")
and
GENERAL AMERICAN LIFE INSURANCE COMPANY, ST. LOUIS, MISSOURI
(hereinafter referred to as "GENERAL AMERICAN")
This Amendment is Effective August 1, 1993
Effective August 1, 1993, all agreements which cede or retrocede reinsurance
form THE CEDING COMPANY to GENERAL AMERICAN are amended to replace GENERAL
AMERICAN with Saint Louis Reinsurance Company. On and after August 1, 1993, all
past, present and future rights and responsibilities of GENERAL AMERICAN under
these agreements are assigned to Saint Louis Reinsurance Company.
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as stated in this Amendment. It is subject to all of the terms and
conditions of the Reinsurance Agreement together with all Amendments and
supplements.
IN WITNESS WHEREOF, all parties have executed this Amendment in triplicate.
GENERAL AMERICA LIFE INSURANCE COMPANY STATE MUTUAL LIFE ASSURANCE COMPANY
By: /s/ By: /s/ Xxxxxx X. Xxxxx, Xx.
------------------------------ -------------------------------
Title: Executive Vice President Title: AVP & Actuary
-------------------------------
Date: July 20, 1993 Date: July 26, 1993
-------------------------------
SAINT LOUIS REINSURANCE COMPANY
By: /s/
------------------------------
Title: President
Date: July 20, 1993
RGA Correspondence
Omitted 2 Pages
648-0-6
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
SAINT LOUIS REINSURANCE COMPANY
St. Louis, Missouri
This Amendment is Effective January 1, 1993
I. INCREASED MINIMUM IN-FORCE NET AMOUNT AT RISK RENEWAL
Effective January 1, 1993, the minimum in-force net amount at risk at
renewal shall be increased to $25,001.
Article IX, Paragraph B., of this Agreement is hereby revised to read as
follows:
"B. Whenever the amount of reinsurance on a policy under this Agreement
reduces to $25,001, or less, the reinsurance will be wholly
recaptured."
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
648-0-6
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: December 15, 1993
------------------------------
ST. LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: President Title: Executive Vice President
------------------------------ -------------------------------
Date: December 2, 1993
------------------------------
648-0-7
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective May 1,1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
(hereinafter call the CEDING COMPANY)
and
SAINT LOUIS REINSURANCE COMPANY
St. Louis, Missouri
(hereinafter called SAINT LOUIS RE)
This Amendment is Effective January 1, 1993
I. REVISED PREMIUMS AND PAY PERCENTS
Effective for Exceptional Advantage policies dated January 1, 1993, and
thereafter, the rates in Rate Table C-7 are hereby replaced by the attached
Rate Table C-7 (Rev. 1-1-93) for the first $3,000,000 reinsured per insured
life. Pay percentages shall also be revised.
The Exhibit C cover pages are hereby replaced by the attached Exhibit C
(Rev. 1-1-93) cover pages to document the above premium and pay percent
changes.
II. PARTICIPATION PERCENTAGE
Effective for Exceptional Advantage policies dated January 1, 1993, and
thereafter, the participation percentage shall be changed to 10%. Exhibit D
is hereby replaced by the attached Exhibit D (Rev. 1-1-93) to document this
change in participation percent.
III. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
648-0-7
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: April 19, 1994
------------------------------
ST. LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Executive VP Sales & Mktg. Title: Executive Vice President
------------------------------ -------------------------------
Date: 4-8-94
------------------------------
EXHIBIT C
PREMIUMS
JOINT AND LAST SURVIVOR
BOTH LIVES REINSURED
The basis for figuring the premiums payable for this coverage will be as
described below:
1. Joint and Last Survivor premium rates are attached as Tables
C-1A, C-1B, and C-1C. These rates have been calculated from
Single Life Mortality Rates with the result increased by 20 cents
per thousand to cover simultaneous accidental deaths, reinsurance
expenses and the reserving of capacity.
2. The Joint and Last Survivor premium rates are pre-calculated for
two male nonsmokers (C-1A), two male smokers (C-1B) and a male
smoker/nonsmoker combination (C-1C), using a joint equal age
approach. Table C-2 will be used to convert two single ages to a
joint equal age. A five year setback will be used for female
lives.
3. A rate-up in age from Tables C-3 and C-4 will be used to handle
table ratings (C-3) and flat extras (C-4).
The steps to be used for finding the proper rate are as follows:
1. Apply the five-year setback to change the female ages to male
ages.
2. Use Tables C-3 and C-4 to rate up male ages for table ratings and
flat extras.
3. Use Table C-2 to determine the joint equal age, with the age
difference based on the ages resulting from steps 1 and 2.
4. Use the joint equal age to find the proper Joint and Last
Survivor premium rate from the applicable C-1 table (C-1A for
NS/NS, C-1B for S/S or C-1C for S/NS).
(Rev. 1-1-93)
648-0-7
JOINT AND LAST SURVIVOR (Cont'd.)
ONE LIFE REINSURED
When one of the lives is uninsurable, the premiums for the reinsured life
will be on the basis of the rates shown in Table C-5, based on the age and
sex of the single life being reinsured.
The premium will be increased by any flat extra premium charged the insured
on the face amount initially reinsured, less total allowances in the amount
of 100% of any first year permanent (payable 6 years or more) extra or 20%
of any first year temporary flat extra premium, and 20% of any renewal flat
extra premium.
For each case reinsured, GENERAL AMERICAN will receive a policy fee of
$25.00 each year in addition to the rates as described in this exhibit.
EXCHANGE OPTION RIDER
EXCHANGE OPTION
The consideration payable for reinsurance of the Exchange Option Rider will
be based on the rates shown in Tables C-6.
OPTION POLICIES
At the exercise of the Exchange Option, the premiums will be based on a
point in scale transfer to the premium basis described in the reinsurance
treaty document covering the plan involved, measured from the issue date of
the original policy.
(Rev. 1-1-93)
648-0-7
JOINT AND LAST SURVIVOR (CONT'D.)
EXCEPTIONAL ADVANTAGE
The basis for figuring the premiums payable for this coverage will be
determined according to the amount reinsured per insured life as follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
1. The reinsurance premium for each life covered under a policy will
be based on the appropriate rate from the attached Table C-7
(Rev. 1-1-93), multiplied by the following percentages:
YEARS
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
For substandard table ratings, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year
temporary flat extra premium, and 20% of any renewal flat extra
premium.
Increases in the death benefit that are underwritten in
accordance with the CEDING COMPANY'S usual underwriting standards
for individually selected risks for new issues will be treated as
new business and the percentages will recommence at the first
year.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to SAINT LOUIS RE on the policy.
(Rev. 1-1-93)
648-0-7
EXCEPTIONAL ADVANTAGE (CONT'D.)
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
1. Premiums for life reinsurance of amounts in excess of $3,000,000
per insured life will be based on the rates shown in Table C-8
(Rev. 1-1-93).
Flat extra premiums will be on the same basis as described above.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to SAINT LOUIS RE on the policy.
(Rev. 1-1-93)
STATE MUTUAL UL
ANNUAL MORTALITY CHARGES
Omitted 4 Pages
648-0-7
EXHIBIT D
LIMITS
SAINT LOUIS RE'S PARTICIPATION PERCENTAGE
SAINT LOUIS RE'S participation percentage for each risk reinsured shall be
as shown below:
JOINT AND LAST SURVIVOR
33 1/3 %
EXCEPTIONAL ADVANTAGE
10%
AUTOMATIC BINDING LIMIT
The CEDING COMPANY agrees not to automatically bind SAINT LOUIS RE when the
amount to be ceded to SAINT LOUIS RE exceeds the following limits:
Regular Retention Cases: $2,000,000
Special Automatic Cases: Binding limit equal to amount retained by
the CEDING COMPANY
ISSUE LIMIT
The amount issued on any case ceded automatically shall not exceed the
following limit:
$7,000,000
JUMBO LIMIT
A Jumbo risk is one where the amount of insurance already in force and
applied for on the risk in all companies exceeds the following limit:
$15,000,000
ISSUE AGE LIMIT
Each of the lives must be age 80 or less.
(Rev. 1-1-93)
648-0-8
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
SAINT LOUIS REINSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective April 1, 1994
I. NEW YORK BUSINESS PREVIOUSLY ISSUED BY SMA LIFE
Effective for business issued on and after April 1, 1994, all business
previously issued in New York by SMA Life Assurance Company and retroceded
to SAINT LOUIS RE by STATE MUTUAL will not be issued by STATE MUTUAL and
ceded directly to SAINT LOUIS RE under the terms of this Agreement.
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: May 19, 1994
------------------------------
ST. LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Executive Vp Sales & Mktg. Title: Executive V.P.
------------------------------ -------------------------------
Date: (illegible)
------------------------------
648-0-9
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Effective May 1,1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
SAINT LOUIS REINSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective January 1, 1994
I. ELIMINATION OF POLICY FEE
Effective with policies issued on and after January 1, 1994, the policy fee
is hereby eliminated and the Exhibit C cover pages are hereby replaced by
the attached Exhibit C cover pages which have been amended through the
removal of the sentence that had made reference to policy fees.
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: August 4, 1994
------------------------------
ST. LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Executive Vice President Title: Executive Vice President & COO
------------------------------ -------------------------------
Date: 7-28-94
------------------------------
State Mu.648-0-9
July 26, 1994
EXHIBIT C (CONT'D.)
JOINT AND LAST SURVIVOR (CONT'D.)
ONE LIFE REINSURED
When one of the lives is uninsurable, the premiums for the reinsured life
will be on the basis of the rates shown in Table C-5, based on the age and
sex of the single live being reinsured.
The premium will be increased by any flat extra premium charged the insured
on the face amount initially reinsured, less total allowances in the amount
of 100% of any first year permanent (payable 6 years or more) extra or 20%
of any first year temporary flat extra premium, and 20% of any renewal flat
extra premium.
EXCHANGE OPTION RIDER
EXCHANGE OPTION
The consideration payable for reinsurance of the Exchange Option Rider will
be based on the rates shown in Tables C-6.
OPTION POLICIES
At the exercise of the Exchange Option, the premiums will be based on a
point-in-scale transfer to the premium basis described in the reinsurance
treaty document covering the plan involved, measured from the issue date of
the original policy.
EXCEPTIONAL ADVANTAGE
The basis for figuring the premiums payable for this coverage will be
determined according to the amount reinsured per insured life as follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
1. The reinsurance premium for each life covered under a policy will
be based on the appropriate rate from the attached Table C-7
(Rev. 1-1-93), multiplied by the following percentages:
YEARS
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
(Rev. 1-1-94)
State Mu.648-0-9
July 26, 1994
EXHIBIT C (CONT'D.)
EXCETIONAL ADVANTAGE (CONT'D.)
For substandard table ratings, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year
temporary flat extra premium, and 20% of any renewal flat extra
premium.
Increases in the death benefit that are underwritten in
accordance with the CEDING COMPANY'S usual underwriting standards
for individually selected risks for new issues will be treated as
new business and the percentages will recommence at the first
year.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to SAINT LOUIS RE on the policy.
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
1. Premiums for life reinsurance of amounts in excess of $3,000,000
per insured life will be based on the rates shown in Table C-8
(Rev. 1-1-93).
Flat extra premiums will be on the same basis as described above.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to SAINT LOUIS RE on the policy.
(Rev. 1-1-94)
State Mu.648-0-9
July 26, 1994
648-1-0
ADDENDUM TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED May 1,1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
SAINT LOUIS REINSURANCE COMPANY, St. Louis, Missouri
This Addendum is Effective Xxxxx 0, 0000
X. ADDITION OF VARIABLE INHEIRITAGE PLAN & SECOND-TO-DIE RIDER
Effective March 1, 1994, reinsurance required by STATE MUTUAL on the policy
plan and rider listed below will be assumed by SAINT LOUIS RE under the
terms of this Agreement:
VARIABLE INHEIRITAGE (Form 1026-94)
SECOND-TO-DIE RIDER (Form 1079-94)
Exhibit B of this Agreement is hereby replaced by the attached Exhibit B
which now includes the Variable Inheiritage Plan and Second-to-Die Rider in
the list of plans and riders covered.
The cover pages for Exhibit C are hereby replaced by the attached Exhibit C
cover pages showing the reinsurance premium basis for the above plan and
rider.
Exhibit D of this Agreement is hereby replaced by the attached Exhibit D
showing limits that apply to the Variable Inheiritage Plan and
Second-To-Die Rider combined.
II. All provisions of the Automatic Reinsurance Agreement not specifically
modified herein remain unchanged.
State Mu.648-1-0
July 26, 1994
IN WITNESS WHEREOF, both parties have executed this Addendum in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: August 4, 1994
------------------------------
ST. LOUIS REINSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Executive Vice President Title: Executive Vice President & COO
------------------------------ -------------------------------
Date: 7-28-94
------------------------------
State Mu.648-1-0
July 26, 1994
EXHIBIT B
POLICY PLANS AND RIDERS REINSURED
EFFECTIVE DATE
May 1, 1989 JOINT AND LAST SURVIVOR
May 1, 1989 EXCHANGE OPTION RIDER
September 1, 1990 EXCEPTIONAL ADVANTAGE
March 1, 1994 VARIABLE INHEIRITAGE (Form 1026-94)
March 1, 1994 SECOND-TO-DIE RIDER (Form 1079-94)
(attached to VARIBLE INHEIRITAGE)
(Rev. 3-1-94)
State Mu.648-1-0
July 26, 1994
EXHIBIT C
PREMIUMS
JOINT AND LAST SURVIVOR, VARIABLE INHEIRITAGE
BOTH LIVES REINSURED
The basis for figuring the premiums payable for this coverage will be as
described below:
1. Joint and Last Survivor premium rates are attached as Tables
C-1A, C-1B, and C-1C. These rates have been calculated from
Single Life Mortality Rates with the result increased by 20 cents
per thousand to cover simultaneous accidental deaths, reinsurance
expenses and the reserving of capacity.
2. The Joint and Last Survivor premium rates are pre-calculated for
two male nonsmokers (C-1A), two male smokers (C-1B) and a male
smoker/nonsmoker combination (C-1C), using a joint equal age
approach. Table C-2 will be used to convert two single ages to a
joint equal age. A five year setback will be used for female
lives.
3. A rate-up in age from Tables C-3 and C-4 will be used to handle
table ratings (C-3) and flat extras (C-4).
The steps to be used for finding the proper rate are as follows:
1. Apply the five-year setback to change the female ages to male
ages.
2. Use Tables C-3 and C-4 to rate up male ages for table ratings and
flat extras.
3. Use Table C-2 to determine the joint equal age, with the age
difference based on the ages resulting from steps 1 and 2.
4. Use the joint equal age to find the proper Joint and Last
Survivor premium rate from the applicable C-1 table (C-1A for
NS/NS, C-1B for S/S or C-1C for S/NS).
(Rev. 3-1-94)
State Mu.648-1-0
July 26, 1994
JOINT AND LAST SURVIVOR, VARIABLE INHEIRITAGE (CONT'D.)
ONE LIFE REINSURED
When one of the lives is uninsurable, the premiums for the reinsured life
will be on the basis of the rates shown in Table C-5, based on the age and
sex of the single live being reinsured.
The premium will be increased by any flat extra premium charged the insured
on the face amount initially reinsured, less total allowances in the amount
of 100% of any first year permanent (payable 6 years or more) extra or 20%
of any first year temporary flat extra premium, and 20% of any renewal flat
extra premium.
EXCHANGE OPTION RIDER
EXCHANGE OPTION
The consideration payable for reinsurance of the Exchange Option Rider will
be based on the rates shown in Tables C-6.
OPTION POLICIES
At the exercise of the Exchange Option, the premiums will be based on a
point in scale transfer to the premium basis described in the reinsurance
treaty document covering the plan involved, measured from the issue date of
the original policy.
SECOND-TO-DIE RIDER
The consideration payable for reinsurance of a Second-To-Die Rider attached
to a Variable Inheiritage policy will be based on the monthly rates shown
below:
AVERAGE ISSUE AGE* MONTHLY RATE PER $1,000
----------------- -----------------------
5 - 7 $0.07
8 - 46 0.08
47 - 54 0.09
55 - 59 0.10
60 - 63 0.11
64 - 85 0.12
*The Average Issue Age is defined to be the truncated average of
the two insureds.
(Rev. 3-1-94)
State Mu.648-1-0
July 26, 1994
SECOND-TO-DIE RIDER (CONT'D.)
The premiums are increased on a percentage basis for substandard tables.
The premium will be increased by any flat extra premium charged the insured
on the amount reinsured.
The premiums are level for a 4-year period. The Rider is not renewable and
is not convertible.
EXCEPTIONAL ADVANTAGE
The basis for figuring the premiums payable for this coverage will be
determined according to the amount reinsured per insured life as follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
1. The reinsurance premium for each life covered under a policy will
be based on the appropriate rate from the attached Table C-7
(Rev. 1-1-93), multiplied by the following percentages:
YEARS
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
For substandard table ratings, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year
temporary flat extra premium, and 20% of any renewal flat extra
premium.
Increases in the death benefit that are underwritten in
accordance with the CEDING COMPANY'S usual underwriting standards
for individually selected risks for new issues will be treated as
new business and the percentages will recommence at the first
year.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to SAINT LOUIS RE on the policy.
(Rev. 3-1-94)
State Mu.648-1-0
July 26, 1994
EXCEPTIONAL ADVANTAGE (CONT'D.)
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
1. Premiums for life reinsurance of amounts in excess of $3,000,000
per insured life will be based on the rates shown in Table C-8
(Rev. 1-1-93).
Flat extra premiums will be on the same basis as described above.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to SAINT LOUIS RE on the policy.
(Rev. 3-1-94)
State Mu.648-1-0
July 26, 1994
EXHIBIT D
LIMITS
SAINT LOUIS RE'S PARTICIPATION PERCENTAGE
SAINT LOUIS RE'S participation percentage for each risk reinsured shall be
as shown below:
JOINT AND LAST SURVIVOR
VARIABLE INHEIRITAGE, SECOND-TO-DIE RIDER
33 1/3 %
EXCEPTIONAL ADVANTAGE
10%
AUTOMATIC BINDING LIMIT
The CEDING COMPANY agrees not to automatically bind SAINT LOUIS RE when the
amount to be ceded to SAINT LOUIS RE exceeds the following limits (base
policy and rider combined):
Regular Retention Cases: $2,000,000
Special Automatic Cases: Binding limit equal to amount retained by
the CEDING COMPANY
ISSUE LIMIT
The amount issued on any case ceded automatically shall not exceed the
following limit:
$7,000,000
JUMBO LIMIT
A Jumbo risk is one where the amount of insurance already in force and
applied for on the risk in all companies exceeds the following limit:
$15,000,000
ISSUE AGE LIMIT
Each of the lives must be age 80 or less.
(Rev. 3-1-94)
State Mu.648-1-0
July 26, 1994
648-0-11
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED May 1,1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
Worcester, Massachusetts
and
RGA REINSURANCE COMPANY
St. Louis, Missouri
(Formerly known as Saint Louis Reinsurance Company)
This Amendment is Effective June 1, 1995
Effective June 1, 1995, this Agreement is being amended as described below.
These changes shall affect new business issued on and after September 1, 1990.
I. CLARIFICATION OF SURVIVORSHIP BENEFIT
This Amendment shall hereby clarify the Survivorship Benefit which is
associated with the Exceptional Advantage Plan, effective September 1,
1990.
Beginning on the date of death of the first to die while this policy is in
force, term insurance will be provided on each of the insureds who survive.
The term insurance will continue for 90 days. The amount of the term
insurance benefit will be the face amount of the policy as of the date of
death of the first to die. Unless requested otherwise, the term insurance
benefit will be payable to the beneficiary named in the policy, and the
benefit will be paid in the same way as the other death proceeds payable
under this policy. The owner may name a new beneficiary for the term
insurance benefit after the death of the first to die. There will be no
premiums payable for reinsurance of the Survivorship Benefit.
State Mu.648-0-11
09006480.011
June 26, 1995
II. REMOVAL OF PAY PERCENT FOR EXCEPTIONAL ADVANTAGE PLAN
Effective September 1, 1990, the 95% pay percent applicable to the
Exceptional Advantage Plan when both individual reinsurance premiums are
combined, is hereby deleted.
Item 2. under the Exceptional Advantage section of Exhibit C of this
Agreement is hereby revised to read:
"The individual reinsurance premiums will then be combined to arrive
at the total reinsurance premium to be paid to RGA RE on the policy."
III. All provisions of the Automatic Reinsurance Agreement not specifically
modified herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: August 2, 1995
------------------------------
RGA REINSURANCE COMPANY
(Formerly known as Saint Louis Reinsurance Company)
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Vice President Title: Executive Director
------------------------------ -------------------------------
Date: 7-3-95
------------------------------
State Mu.648-0-11
09006480.011
June 26, 1995
2
648-0-10
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT DATED May 1,1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
RGA REINSURANCE COMPANY
(Formerly known as Saint Louis Reinsurance Company)
St. Louis, Missouri
This Amendment is Effective May 1, 1989
I. EXTENDED JOINT EQUAL AGE TABLE
Table C-2 of this Agreement is hereby replaced by the attached Table C-2
which has been extended through the addition of the Age Differences and
years of Addition to Younger Age shown below:
AGE ADDITION TO
DIFFERENCE YOUNGER AGE
---------- -----------
61 - 64 20
65 - 68 21
69 - 72 22
73 - 77 23
78 - 80 24
II. All provisions of the Automatic Reinsurance Agreement not specifically
modified herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: September 11, 1995
------------------------------
RGA REINSURANCE COMPANY
(Formerly known as Saint Louis Reinsurance Company)
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Executive Director Title: Vice President
------------------------------ -------------------------------
Date: (illegible)
------------------------------
State Mu.648-0-10
09006480.010
September 5, 1995
JOINT EQUAL AGE TABLE
AGE ADDITION TO
DIFFERENCE YOUNGER AGE
---------- -----------
0 0
1 - 2 1
3 - 4 2
5 - 6 3
7 - 8 4
9 - 10 5
11 - 12 6
13 - 15 7
16 - 18 8
19 - 21 9
22 - 24 10
25 - 28 11
29 - 32 12
33 - 36 13
37 - 40 14
41 - 44 15
45 - 48 16
49 - 52 17
53 - 56 18
57 - 60 19
61 - 64 20
65 - 68 21
69 - 72 22
73 - 77 23
78 - 80 24
To determine the Joint Equal Age, figure the age difference, look up
the "Addition to Younger Age" in this table and add it to the younger
age.
State Mu.648-0-10
09006480.010
September 5, 1995
648-0-12
AMENDMENT TO THE
AUTOMATIC REINSURANCE AGREEMENT Dated May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA, Worcester, Massachusetts
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
This Amendment is Effective October 11, 1995
I. NAME CHANGE FOR CEDING COMPANY
As a result of demutualization effective October 11, 1995, the name of the
Ceding Company has been changed from State Mutual Life Assurance Company of
America to First Allmerica Financial Life Insurance Company. This
Automatic
Agreement and the Amendments and Addendum to it are hereby amended to
reflect this name change. All provisions contained in these documents now
apply to business ceded by First Allmerica Financial Life Insurance Company
to RGA Reinsurance Company.
II. All provisions of the Automatic Reinsurance Agreement not amended herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
FIRST ALLMERICA FINANCIAL LIFE INSURANCE
COMPANY (Formerly State Mutual Life Assurance Company of America)
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: 2/12/96
------------------------------
RGA REINSURANCE COMPANY
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Vice President Title: Executive Director
------------------------------ -------------------------------
Date: 1-26-96
------------------------------
State Mu.648-0-12
09006480.012
January 29, 1996
AMENDMENT TO THE
REINSURANCE AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY, Worcester, Massachusetts
(hereinafter called the "CEDING COMPANY")
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
(hereinafter called "RGA RE")
This Amendment is Effective the Original Date of the Reinsurance Agreement.
I. CLAIMS
Effective the Original Date of all Reinsurance Agreements containing
Facultative Provisions, the following paragraph is hereby added to the
Claims provision:
"In the event RGA RE does not receive notification of acceptance from
the CEDING COMPANY prior to the death occurring, the RGA RE will apply
the CEDING COMPANY'S tie breaker rules as described in Attachment A to
this Amendment."
II. All provisions of the Reinsurance Agreement not specifically modified
herein remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: January 18, 1996
------------------------------
RGA REINSURANCE COMPANY
(Formerly known as Saint Louis Reinsurance Company)
By: /s/ By: /s/
------------------------------ -------------------------------
Title: Vice President Title: Exec. Director
------------------------------ -------------------------------
Date: 5/6/96
------------------------------
Attachment A
Facultative Tie Breaker Rules
(Companies shown below are ranked from the lowest reinsurance cost to the
highest reinsurance cost. If same number within a column, cost is equal.)
UNIVERSAL LIFE EXECTERM II TEN YR. TERM
(INCLUDES VEL AND & State Mutual
INHEIRITAGE AND ADVANTAGE) FLEXTERM BUSINESS
----------- -------------- -------- --------
1. Conn. General (K) 1. Life Re (G) 1. Gen. American (D) 1. Life Re (G)
1. Gen. American (D) 2. Conn. General (K) 2. Life Re (G) 2. Gen. American (D)
1. Lincoln (X) 3. Cologne (B) 3. Conn. General (K) 3. Lincoln (X)
4. Lincoln (X) 4. Lincoln (X) 4. Cologne (B)
5. Gen. Amer. (D) 5. Conn. General (K)
000-00-00
ADDENDUM
to the
AUTOMATIC AND FACULTATIVE AGREEMENT Dated May 1, 1989
between
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY, Worcester, Massachusetts
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
This Addendum is Effective February 1, 1997
I. ADDITION OF SECOND-TO-DIE SINGLE PREMIUM VARIABLE UNIVERSAL LIFE
Effective February 1, 1997, reinsurance required by the CEDING COMPANY on
the policy plan listed below will be assumed by RGA RE under the terms of
this Agreement:
SECOND-TO-DIE SINGLE PREMIUM VARIABLE UNIVERSAL LIFE (Form 1030-96)
For this plan, the first year net amount at risk must equal or exceed
$50,001 for any reinsurance to be ceded.
Exhibit B, Policy Plans and Riders Reinsured (Rev. 3/1/94) of this
Agreement is hereby revised and replaced by the attached Exhibit B, Policy
Plans and Riders Reinsured (Rev. 2/1/97) which now includes Second-To-Die
Single Premium Variable Universal Life in the list of plans and riders
covered.
The Exhibit C, Premiums (Rev. 3/1/94) cover pages of this Agreement are
hereby revised and replaced by the attached Exhibit C, Premiums (Rev.
2/1/97) cover pages showing the reinsurance premium basis for the above
plan.
Exhibit D, Limits (Rev. 3/1/94) of this Agreement is hereby revised and
replaced by the attached Exhibit D, Limits (Rev. 2/1/97) which now shows
the participation for the Second-To-Die Single Premium Variable Universal
Life Plan.
II. ADDITION OF UNDERWRITING GUIDELINES
Effective February 2, 1997, Underwriting Guidelines are hereby added as
Exhibit E.
III. All provisions of the Automatic and Facultative Reinsurance Agreement not
specifically modified herein remain unchanged.
J:\TREATY\TRTY\XXXX.XX#\090\09006480.200
FAFLIC.648-02-00
April 21,1997
IN WITNESS WHEREOF, both parties have executed this Addendum in duplicate as
follows:
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: April 28, 1997 Date: April 28, 1997
------------------------------ -------------------------------
RGA REINSURANCE COMPANY
By: /s/
------------------------------
Title: Vice President
Date: 4-22-97
------------------------------
J:\TREATY\TRTY\XXXX.XX#\090\09006480.200
FAFLIC.648-02-00
April 21,1997
2
EXHIBIT B
POLICY PLANS AND RIDERS REINSURED
EFFECTIVE DATE
May 1, 1989 JOINT AND LAST SURVIVOR
May 1, 1989 EXCHANGE OPTION RIDER
September 1, 1990 EXCEPTIONAL ADVANTAGE
March 1, 1994 VARIABLE INHEIRITAGE (Form 1026-94)
March 1, 1994 SECOND-TO-DIE RIDER (Form 1079-94)
(attached to VARIBLE INHEIRITAGE)
February 1, 1997 SECOND-TO-DIE SINGLE PREMIUM VARIABLE UNIVERSAL
LIFE (Form 1030-96)
(Rev. 2/1/97)
J:\TREATY\TRTY\XXXX.XX#\090\09006480.200
FAFLIC.648-02-00
April 21,1997
3
EXHIBIT C
PREMIUMS
JOINT AND LAST SURVIVOR, VARIABLE INHEIRITAGE, SECOND-TO-DIE SINGLE PREMIUM
VARIABLE UNIVERSAL LIFE
BOTH LIVES REINSURED
The basis for figuring the premiums payable for this coverage will be as
described below:
1. Joint and Last Survivor premium rates are attached as Tables
C-1A, C-1B, and C-1C. These rates have been calculated from
Single Life Mortality Rates with the result increased by 20 cents
per thousand to cover simultaneous accidental deaths, reinsurance
expenses and the reserving of capacity.
2. The Joint and Last Survivor premium rates are pre-calculated for
two male nonsmokers (C-1A), two male smokers (C-1B) and a male
smoker/nonsmoker combination (C-1C), using a joint equal age
approach. Table C-2 will be used to convert two single ages to a
joint equal age. A five year setback will be used for female
lives.
3. A rate-up in age from Tables C-3 and C-4 will be used to handle
table ratings (C-3) and flat extras (C-4).
The steps to be used for finding the proper rate are as follows:
1. Apply the five-year setback to change the female ages to male
ages.
2. Use Tables C-3 and C-4 to rate up male ages for table ratings and
flat extras.
3. Use Table C-2 to determine the joint equal age, with the age
difference based on the ages resulting from steps 1 and 2.
4. Use the joint equal age to find the proper Joint and Last
Survivor premium rate from the applicable C-1 table (C-1A for
NS/NS, C-1B for S/S or C-1C for S/NS).
ONE LIFE REINSURED
When one of the lives is uninsurable, the premiums for the reinsured life
will be on the basis of the rates shown in Table C-5, based on the age and
sex of the single life being reinsured.
The premium will be increased by any flat extra premium charged the insured
on the face amount initially reinsured, less total allowances in the amount
of 100% of any first year permanent (payable 6 years or more) extra or 20%
of any first year temporary flat extra premium, and 20% of any renewal flat
extra premium.
EXCHANGE OPTION RIDER
J:\TREATY\TRTY\XXXX.XX#\090\09006480.200
FAFLIC.648-02-00
April 21,1997
4
EXCHANGE OPTION
The consideration payable for reinsurance of the Exchange Option Rider will
be based on the rates shown in Tables C-6.
OPTION POLICIES
At the exercise of the Exchange Option, the premiums will be based on a
point in scale transfer to the premium basis described in the reinsurance
treaty document covering the plan involved, measured from the issue date of
the original policy.
SECOND-TO-DIE RIDER
The consideration payable for reinsurance of a Second-To-Die Rider attached
to a Variable Inheiritage policy will be based on the monthly rates shown
below:
AVERAGE ISSUE AGE* MONTHLY RATE PER $1,000
----------------- -----------------------
5 - 7 $0.07
8 - 46 0.08
47 - 54 0.09
55 - 59 0.10
60 - 63 0.11
64 - 85 0.12
*The Average Issue Age is defined to be the truncated average of the
two insureds.
The premiums are increased on a percentage basis for substandard tables.
The premium will be increased by any flat extra premium charged the insured
on the amount reinsured.
The premiums are level for a 4-year period. The Rider is not renewable and
is not convertible.
EXCEPTIONAL ADVANTAGE
The basis for figuring the premiums payable for this coverage will be
determined according to the amount reinsured per insured life as follows:
FIRST $3,000,000 REINSURED PER INSURED LIFE
1. The reinsurance premium for each life covered under a policy
will be based on the appropriate rate from the attached
Table C-7 (Rev. 1-1-93), multiplied by the following
percentages:
YEARS
CLASS 1 2-10 11+
----- - ---- ---
Nonsmoker 0% 58% 72%
Smoker 0% 62% 75%
J:\TREATY\TRTY\XXXX.XX#\090\09006480.200
FAFLIC.648-02-00
April 21,1997
5
EXCEPTIONAL ADVANTAGE (CONTINUED)
For substandard table ratings, the rates will be increased by 25%
per table.
The premium will be increased by any flat extra premium charged
the insured on the face amount initially reinsured, less total
allowances in the amount of 100% of any first year permanent
(payable 6 years or more) extra or 20% of any first year
temporary flat extra premium, and 20% of any renewal flat extra
premium.
Increases in the death benefit that are underwritten in
accordance with the CEDING COMPANY'S usual underwriting standards
for individually selected risks for new issues will be treated as
new business and the percentages will recommence at the first
year.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to SAINT LOUIS RE on the policy.
REINSURED AMOUNTS IN EXCESS OF $3,000,000 PER INSURED LIFE
1. Premiums for life reinsurance of amounts in excess of $3,000,000
per insured life will be based on the rates shown in Table C-8
(Rev. 1-1-93).
Flat extra premiums will be on the same basis as described above.
2. The individual reinsurance premiums will then be combined and the
resulting amount will be multiplied by 95% to arrive at the total
reinsurance premium to be paid to RGA RE on the policy.
J:\TREATY\TRTY\XXXX.XX#\090\09006480.200
FAFLIC.648-02-00
April 21,1997
6
EXHIBIT D
LIMITS
RGA RE'S PARTICIPATION PERCENTAGE
RGA RE's participation percentage for each risk reinsured shall be as shown
below:
JOINT AND LAST SURVIVOR,
VARIABLE INHEIRITAGE, SECOND-TO-DIE RIDER,
SECOND-TO-DIE SINGLE PREMIUM VARIBLE UNIVERSAL LIFE
33 1/3 %
EXCEPTIONAL ADVANTAGE
10%
AUTOMATIC BINDING LIMITS
The CEDING COMPANY agrees not to automatically bind RGA RE when the amount
to be ceded to RGA RE exceeds the following limits (base policy and rider
combined):
Regular Retention Cases: $2,000,000
Special Automatic Cases: Binding limit equal to amount retained
by the CEDING COMPANY
ISSUE LIMIT
The amount issued on any case ceded automatically shall not exceed the
following limit (base policy and rider combined):
$7,000,000
JUMBO LIMIT
A Jumbo risk is one where the amount of insurance already in force and
applied for on the risk in all companies exceeds the following limit:
$15,000,000
ISSUE AGE LIMIT
Each of the lives must be age 80 or less.
J:\TREATY\TRTY\XXXX.XX#\090\09006480.200
FAFLIC.648-02-00
April 21,1997
7
EXHIBIT E
SPVUL UNDERWRITING PROCESSES
Simplified Underwriting
(Based on Age and Face Amount)
1. An applicant must pay guideline single premium to qualify - See Exhibit I.
2. An applicant completes the Simplified Underwriting questions (two
questions).
3. If the applicant answers NO to all questions, the applicant skips all other
underwriting questions.
Allmerica will request an MIB.
a. If the MIB okay, Allmerica will issue the contract as soon
as the payment is received and all forms are complete.
b. If the MIB is not okay, Allmerica will contact the applicant
directly for additional information. Based on information
obtained from the applicant, Allmerica will decide what
additional actions will be needed, i.e. contacting the
applicant's personal physician, a medical test relating to
the specific item and, in rare cases, a complete medical
exam.
4. If the applicant answers YES to any of the questions, they will also
complete the Additional Underwriting Information Section (Question #10).
Allmerica will request an MIB.
Allmerica will decide what additional actions will be needed,
i.e. contacting the applicant's personal physician, a medical
test relating to the specific item and, in rare cases, a complete
medical exam.
AB-93/dca10.24.96
EXHIBIT E
SPVUL UNDERWRITING PROCESSES
Basic - Full Underwriting
(Based on Age and Face Amount)
1. An applicant completes the Basic Underwriting questions (five questions).
Allmerica will request an MIB.
2. If the applicant answers YES to the "medical" questions, they will also
complete the Additional Underwriting Information Section.
3. If the applicant answers YES to any of the other questions, Allmerica will
send the applicant the proper Allmerica form(s).
4. Allmerica will contact Paramedical firm to order a medical exam or other
normal age and amount requirements on the applicant.
AB-93/dca10.24.96
EXHIBIT E
SIMPLIFIED UNDERWRITING
(SPVUL)
AGE SINGLE PREMIUM (MAX)
------- ------------------------
0 - 24 Simplified Not Available
25 - 45 $25,000
45 - 55 $30,000
56 - 65 $50,000
66 - 80 $100,000
81+ Simplified Not Available
000-00-00
AMENDMENT
to the
AUTOMATIC AGREEMENT Dated May 1, 1989
between
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY, Worcester, Massachusetts
(hereinafter called the "CEDING COMPANY")
and
RGA REINSURANCE COMPANY, St. Louis, Missouri
(hereinafter called the "REINSURER")
This Amendment is Effective August 1, 1997
I. ISSUE AGE LIMIT EXTENDED TO 85
Effective August 1, 1997, Exhibit D, Limits (Rev. 2/1/97) is hereby revised
and replaced by the attached Exhibit D, Limits (Rev. 8/1/97) which now
shows the extended issue age limit.
II. REVISED RETENTION
Effective August 1, 1997, Exhibit A, Retention Schedule (Rev. 1/1/93) is
hereby revised and replaced by the attached Exhibit A, Retention Schedule
(Rev. 8/1/97) which now shows the extended issue age limit.
III. All provisions of the
Automatic Agreement not specifically modified herein
remain unchanged.
IN WITNESS WHEREOF, both parties have executed this Amendment in duplicate as
follows:
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxx, Xx. By: /s/
------------------------------ -------------------------------
Title: AVP & Actuary Title: VP & Actuary
------------------------------ -------------------------------
Date: 8/19/97 Date: 8/19/97
------------------------------ -------------------------------
RGA REINSURANCE COMPANY
By: /s/
------------------------------
Title: Vice President
Date: 8/12/97
------------------------------
FAFLIC.09006480.013
August 11,1997
1
EXHIBIT A
FIRST ALLMERICA FINANCIAL RETENTION SCHEDULE
Effective August 1, 1997
LIFE
STANDARD RISKS,
SPECIAL CLASSES A THROUGH H AND SPECIAL CLASSES J, L & P, AND
AGES FLAT EXTRAS OF $20.00 OR LESS FLAT EXTRAS OF $20.01 AND OVER
---------------------------------- -------------------------------------- --------------------------------------
0 $500,000 $250,000
1 - 60 2,000,000 1,000,000
61 - 70 1,000,000 500,000
71 - 80 500,000 250,000
81 - 85 500,000 (up to Table F)
NOTES: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) The minimum size reinsurance case will be $50,001.
AVIATION
Any situation involving aviation will use a $500,000 retention.
WAIVER OF PREMIUM DISABILITY & ACCIDENTAL DEATH BENEFITS
Fully retained.
(Rev. 8/1/97)
FAFLIC.09006480.013
August 11,1997
2
EXHIBIT D
LIMITS
RGA RE'S PARTICIPATION PERCENTAGE
RGA RE's participation percentage for each risk reinsured shall be as shown
below:
JOINT AND LAST SURVIVOR,
VARIABLE INHEIRITAGE, SECOND-TO-DIE RIDER,
SECOND-TO-DIE SINGLE PREMIUM VARIBLE UNIVERSAL LIFE
33 1/3 %
EXCEPTIONAL ADVANTAGE
10%
AUTOMATIC BINDING LIMITS
The CEDING COMPANY agrees not to automatically bind RGA RE when the amount
to be ceded to RGA RE exceeds the following limits (base policy and rider
combined):
Regular Retention Cases: $2,000,000
Special Automatic Cases: Binding limit equal to amount retained by
the CEDING COMPANY
ISSUE LIMIT
The amount issued on any case ceded automatically shall not exceed the
following limit (base policy and rider combined):
$7,000,000
JUMBO LIMIT
A Jumbo risk is one where the amount of insurance already in force and
applied for on the risk in all companies exceeds the following limit:
$15,000,000
ISSUE AGE LIMIT
Each of the lives must be age 80 or less.
(Rev. 8/1/97)
FAFLIC.09006480.013
August 11,1997
3
