AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
between
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
and
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
and
SECURITY LIFE OF DENVER INSURANCE COMPANY
Effective: October 15, 1999
ARTICLES
I. Parties to the Agreement 2
II. Reinsurance Coverage 2
III. Liability 4
IV. Reinsurance Premiums 5
V. Oversights 8
VI. Conversions 8
VII. Changes, Reductions and Terminations 8
VIII. Increase in Retention 10
IX. Reinstatement 11
X. Expenses 11
XI. Claims 12
XII. Extra-Contractual Damages 14
XIII. Inspection of Records 14
XIV. DAC Tax - Section 1.848-2 (g)(8) Election 14
XV. Insolvency 15
XVI. Offset 16
XVII. Arbitration 17
XVIII. Termination 17
XIX. Entire Agreement and Amendments 18
XX. Effective Date 19
XXI. Execution 19
SCHEDULES
A. Specifications
B. Basis of Reinsurance
EXHIBITS
I. Reinsurance Premiums
II. Retention, Binding, and Issue Limits
AMENDMENTS
Number 1
Number 2
FOREIGN NATIONAL EXHIBITS
I. Underwriting Guidelines for Foreign National Business
II. Foreign National Loadings
TABLE TWO TO STANDARD PROGRAM
I. Eligibility Requirements
All Schedules and Exhibits attached will be considered part of this Reinsurance
Agreement.
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ARTICLE I
PARTIES TO THE AGREEMENT
This Agreement is between three Hartford Life Companies, Hartford Life Insurance
Company, Hartford Life and Accident Insurance Company, and Hartford Life and
Annuity Insurance Company (collectively referred to as the Ceding Company) and
Security Life of Denver Insurance Company (referred to as the Reinsurer). The
Reinsurer agrees that the terms and conditions of this Agreement shall apply to
each of the Hartford Life Companies individually, unless otherwise set forth
herein. Ceding Company agrees that it will not make Reinsurer a party to any
litigation between Ceding Company and any insured, policyowner, agent,
beneficiary or assign. Ceding Company shall not use Reinsurer's name with regard
to Ceding Company's agreements or transactions with such third parties unless
Reinsurer gives prior written approval of the use of its name.
ARTICLE II
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of Insurance
shall be reinsured with the Reinsurer on an automatic basis, subject to the
requirements set forth in Section A below or on a facultative basis, subject to
the requirements set forth in Section B below or on a facultative obligatory
basis, subject to the requirements set forth in section C below. The
specifications for all reinsurance under this Agreement are provided in Schedule
A.
A. Requirements for Automatic Reinsurance
For risks which meet the requirements for automatic reinsurance as set forth
below, Reinsurer will participate in a reinsurance pool whereby Reinsurer will
automatically reinsure a portion of the insurance risks as indicated in Schedule
A. The requirements for automatic reinsurance are as follows:
1. The individual must be a resident of the United States or Canada at the time
of application.
2. The individual risk must be underwritten according to the Ceding Company's
standard underwriting practices and guidelines. Any risk falling into the
category of special underwriting programs will be excluded from this Agreement
unless previously agreed to by the Reinsurer via a written amendment.
3. Any risk offered on a facultative basis by the Ceding Company to the
Reinsurer or any other company will not qualify for automatic reinsurance under
this Agreement for the same risk and same life.
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4. The maximum issue age on any risk will be age 90.
B. Requirements for Facultative Reinsurance
1. If the requirements for automatic reinsurance are met, but the Ceding
Company prefers to apply for facultative reinsurance with the Reinsurer, or if
the requirements for automatic reinsurance are not met and the Ceding Company
applies for facultative reinsurance with the Reinsurer, then the Ceding Company
must submit to the Reinsurer all the papers relating to the insurability of the
individual risk for facultative reinsurance.
2. For applications for facultative reinsurance, Ceding Company will send
copies of all of the papers relating to the insurability of the individual risk
to the Reinsurer. After the Reinsurer has examined the request, the Reinsurer
will promptly notify the Ceding Company of the underwriting offer subject to
additional requirements or the final underwriting offer. The final underwriting
offer on the individual risk will automatically terminate upon the earlier of
the withdrawal of the application or 120 days from the date of the final offer,
unless accepted earlier.
3. Notwithstanding the above, if the requirements for automatic reinsurance are
met except that the face amount of insurance applied for is greater than the
Automatic Issue Limit, but does not exceed the Auto Process Limit, then the
Ceding Company will submit to the Lead Reinsurer, (as designated in Schedule A),
all papers relating to the insurability of the individual risk. The Lead
Reinsurer shall review the papers to determine if the Pool should reinsure the
risk, and, if so, on what basis. The Lead Reinsurer shall provide Ceding Company
with a response within 24 hours of receipt of the papers. Approval of the Lead
Reinsurer shall be binding on all other Pool members. This process shall be
known as Automatic
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Processing and subject to the limitations in Exhibit II.
C. Requirements for Facultative Obligatory Reinsurance
The Reinsurer agrees to a facultative obligatory arrangement whereby the Ceding
Company may cede a risk to the Reinsurer and the Reinsurer agrees to accept the
risk using the Ceding Company's underwriting evaluation, subject to the
following conditions:
1. The requirements for automatic reinsurance specified in Article II must be
met except that the total amount of insurance issued and applied for in all
companies on each risk has exceeded the jumbo limits set forth in Exhibit II.
2. The arrangement is available on all policy forms covered under this
Reinsurance Agreement except for term life insurance products.
3. The ceded risk is subject to the Facultative Obligatory Automatic Binding
Limits as stated in Exhibit II.
4. The ceded risk is subject to the Facultative Obligatory Automatic Issue
Limit is as stated in Exhibit II.
5. The Reinsurer provides the minimum facultative obligatory capacity as stated
in Schedule A. However, to the extent that Reinsurer has already filled its
available capacity on the risk, the Reinsurer may reduce the provided capacity
by notifying the Ceding Company of the reduced capacity. Such notification must
occur within 2 business days of the Ceding Company's request for facultative
obligatory capacity on that risk.
D. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in Schedule B.
E. Policy Forms.
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material that
applies to the life insurance reinsured hereunder.
ARTICLE III
LIABILITY
A. The Reinsurer's liability for automatic reinsurance coverage will begin
simultaneously with the Ceding Company's liability except for those risks which
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qualify for automatic reinsurance but are submitted on a facultative basis.
B. The Reinsurer's liability for facultative reinsurance coverage on the
individual risk will begin simultaneously with the Ceding Company's liability
once the Reinsurer has accepted the application for facultative reinsurance and
the Ceding Company has accepted the offer.
C. In no event shall the reinsurance be in force and binding if the issuance
and delivery of such insurance constituted the doing of business in a
jurisdiction in which the Ceding Company was not properly licensed.
D. The Reinsurer's liability for reinsurance coverage on each risk will
terminate when the Ceding Company's liability terminates.
E. The liability of each pool member shall be separate and not joint with the
other pool members.
F. Payment of reinsurance premiums is a condition precedent to reinsurance
coverage.
G. The Reinsurer shall establish reserves on Reinsurer's portion of the policy
on the reserve basis specified in Schedule B.
H. The Reinsurer will not be liable for benefits paid under the Ceding
Company's conditional receipt or temporary insurance agreement unless all the
conditions for automatic reinsurance are met. The Reinsurer's liability under
the Ceding Company's conditional receipt or temporary insurance agreement is
limited to the lesser of (1) or (2) below:
1. The Automatic Acceptance limits with the Reinsurer shown in Schedule A, or
2. The amount for which the Ceding Company is liable, less its retention shown
in Schedule A, less any amount of reinsurance with other Reinsurers.
The pre-issue liability applies only once on any given life regardless of how
many receipts were issued or the Ceding Company accepted initial premiums. After
a policy has been issued, no reinsurance benefits are payable under this
pre-issue coverage provision.
ARTICLE IV
REINSURANCE PREMIUMS
A. Computation.
Premiums for reinsurance under this Agreement will be computed as described in
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Exhibit I.
B. Premium Accounting.
1. Payment of Reinsurance Premiums.
For automatic and facultative reinsurance, following the close of each calendar
month, the Ceding Company will send the Reinsurer a statement and a listing of
new business, changes and terminations.
If a net reinsurance premium balance is payable to the Reinsurer, the Ceding
Company will forward this balance within (60) sixty days after the close of each
month.
If a net reinsurance premium balance is payable to the Ceding Company, the
balance due will be subtracted from the reinsurance premium payable by Ceding
Company for the current month. The Reinsurer shall pay any remaining balance due
the Ceding Company sixty days after the Ceding Company submits the statement.
2. Non-Payment of Premium
If reinsurance premiums are delinquent, the Reinsurer has the right to terminate
the reinsurance risks on those policies listed on the delinquent monthly
statement by giving the Ceding Company ninety days' advance written notice. If
the delinquent premiums have not been paid as of the close of the ninety-day
period, the Reinsurer's liability will terminate for the risks described in the
delinquency notice.
Regardless of the termination, the Ceding Company will continue to be liable to
the Reinsurer for all unpaid reinsurance premiums earned.
The Ceding Company agrees that it will not force termination under the
provisions of this paragraph solely to avoid the recapture requirements or to
transfer the block of business reinsured to another reinsurer.
3. Reinstatement
The Ceding Company may reinstate the risks terminated due to non-payment of
reinsurance premium within sixty days after the effective date of termination by
paying the unpaid reinsurance premiums for the risks in force prior to the
termination. However, the Reinsurer will not be liable for any claim incurred
between the date of termination and reinstatement. The effective date of
reinstatement will be the date the required back premiums are received.
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4. Currency
The reinsurance premiums and benefits payable under this Agreement will be
payable in the lawful money of the United States.
5. Detailed Listing
Before the end of the first quarter, the Ceding Company will send the Reinsurer
a detailed listing of all reinsurance in force as of the close of the
immediately preceding calendar year.
6. Guaranteed Rates
Although the Reinsurer anticipates continuing to accept reinsurance premiums at
the current level, the Reinsurer reserves the right to increase the reinsurance
premiums but only when the Ceding Company increases the cost of insurance rates
to the policyowner. The increase to the reinsurance premium shall be no more
than proportional to the increase to the policy owner's cost of insurance rates.
7. Overpayment of Premium
If the Ceding Company overpays a reinsurance premium and the Reinsurer accepts
the overpayment, the Reinsurer's acceptance will not constitute nor create a
reinsurance liability nor result in any additional reinsurance. Instead, the
Reinsurer will be liable to the Ceding Company for a credit in the amount of the
overpayment. If a reinsured policy terminates, the Reinsurer will refund the
reinsurance premium. This refund will be on a prorated basis without interest
from the date of termination of the policy to the date to which a reinsurance
premium has been paid.
8. Underpayment of Premium
If the Ceding Company fails to make a full premium payment for a policy or
policies reinsured hereunder, due to an error of omission as defined below in
Article V, the amount of reinsurance coverage provided by the Reinsurer shall
not be reduced. However, once the underpayment is discovered, the Ceding Company
will be required to pay to the Reinsurer the difference between the full premium
amount and the amount actually paid, without interest. If payment or the full
premium is not made within 60 days after the discovery of the underpayment, the
underpayment shall be treated as a failure to pay premiums and subject to the
conditions of Section B.2, above.
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ARTICLE V
OVERSIGHTS
If there is an unintentional oversight or misunderstanding in the administration
of this Agreement by Ceding Company or Reinsurer, it can be corrected provided
the correction takes place within a reasonable time after the oversight or
misunderstanding is first discovered. Both Ceding Company and the Reinsurer will
be restored to the position they would have occupied had the oversight or
misunderstanding not occurred. Should it not be possible to restore both parties
to such a position, the Ceding Company and the Reinsurer shall negotiate in good
faith to equitably apportion any resulting liabilities and expenses.
ARTICLE VI
CONVERSIONS
Conversions from existing term plans of insurance reinsured under this Agreement
will be reinsured using the YRT premiums attached as Exhibit I on a
point-in-scale basis up to the original face amount. The converted policy will
be reinsured with the Reinsurer in the same proportion as was determined for the
original term policy.
ARTICLE VII
CHANGES, REDUCTIONS AND TERMINATIONS
A. Replacement or Change
If there is a contractual change or non-contractual replacement of the insurance
reinsured under this Agreement where full underwriting evidence according to the
Ceding Company's regular underwriting rules is not required, the insurance may
continue to be reinsured with the Reinsurer provided it meets the minimum
reinsurance cession amount stated in Schedule A. If a non-contractual change is
requested on a facultatively reinsured policy, the Reinsurer must consent to the
change.
B. Increases or Decreases
1. If the policy face amount of a risk reinsured automatically under this
Agreement increases and:
a. The increase is subject to new underwriting evidence, then the
provisions of Article II, Section A, shall apply to the increase in
reinsurance.
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b. The increase is not subject to new underwriting evidence, then
Reinsurer will accept automatically the increase in reinsurance but
not to exceed the automatic binding limit.
2. If the policy face amount increases, the Ceding Company's retention will be
filled first, then any remaining risk of the increase will be ceded to the
Reinsurer as of the effective date of the increase. If the policy face amount is
reduced, the reinsurance will be reduced first, thereby maintaining the Ceding
Company's retention. Reinsurer will refund to Ceding Company all unearned
reinsurance premiums not including policy fees, less applicable allowances,
arising from reductions, terminations and changes as described in this Article.
3. In the event of a reduction in the face amount of a policy which was ceded
facultatively, the Reinsurer's percentage of the reduced face amount should be
the same percentage of the initial reinsurance ceded.
4. Increases in face amount of policies reinsured on a facultative basis, will
be submitted to the Reinsurer for acceptance.
C. Reduction in Retained Coverage
If any portion of the aggregate insurance retained by Ceding Company on an
individual life reduces or terminates any reinsurance under this Agreement based
on the same life may also be reduced or terminated. Ceding Company will reduce
the reinsurance by applying the retention limits that were in effect at the time
each policy was issued. Ceding Company will not be required to retain an amount
in excess of its regular retention limit for the age, mortality rating and risk
classification at the time of issue for any policy on which reinsurance is being
reduced.
The reinsurance to be terminated or reduced will be determined by chronological
order in which the reinsurance was first reinsured, thereby reducing or
terminating the oldest risks first.
D. Multiple Reinsurers
If a risk is shared by more than one Reinsurer, Reinsurer's percentage of any
increased or reduced reinsurance will be the same as its initial percentage of
the reinsurance for that risk.
E. Termination
If the policy for a risk reinsured under this Agreement is terminated, the
reinsurance for the risk involved will be terminated on the effective date of
termination.
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F. Facultative
On facultative reinsurance, if Ceding Company wishes to reduce the mortality
rating, this reduction will be subject to and reinsured under the facultative
provisions of this Agreement.
ARTICLE VIII
INCREASE IN RETENTION
A. If the Ceding Company should increase the retention limits as listed in
Exhibit II, prompt written notice of the increase must be given to the
Reinsurer.
B. In the event of an increase in retention, the Ceding Company will have the
option of recapturing the reinsurance under this Agreement when the retention
limit increases. The Ceding Company may exercise its option to recapture by
giving written notice to the Reinsurer within ninety days after the effective
date of the increase.
C. If the Ceding Company exercises its option to recapture, then
1. The Ceding Company must reduce the reinsurance on each individual life on
which the Ceding Company retained the maximum retention limit for the age and
mortality rating that was in effect at the time the reinsurance was ceded to the
Reinsurer.
2. No recapture will be made to reinsurance on an individual life if (a) the
Ceding Company retained a special retention limit less than the maximum
retention limit in effect at the time the reinsurance was ceded to the
Reinsurer, or if (b) the Ceding Company did not retain insurance on the risk.
3. The Ceding Company must increase its total amount of insurance on the risk
up to the new retention limit by reducing the reinsurance. If a risk is shared
by more than one Reinsurer, the Reinsurer's percentage of the reduced
reinsurance will be the same as the initial percentage on the individual risk.
4. Upon increasing the retention limit, the reduction in reinsurance will
become effective on the next annual premium anniversary of those policies that
have been inforce for at least ten (10) years.
5. If more than one policy per life is eligible for recapture, then the
eligible policies may be recaptured beginning with the policy with the earliest
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issue date and continuing in chronological order according to the remaining
policies' issue dates.
ARTICLE IX
REINSTATEMENT
If an insurance policy lapses for nonpayment of premium and is reinstated under
the Ceding Company's terms and rules, the Reinsurer will reinstate the
reinsurance as follows:
A. Automatic Cases:
The Ceding Company must pay the Reinsurer all back reinsurance premiums in the
same manner as the Ceding Company received insurance premiums under the policy.
When the Ceding Company reinstates the policy, the reinsurance will be
automatically reinstated.
B. Facultative Cases:
If the Ceding Company requires reinstatement evidence of insurability, the
Ceding Company will submit it to the Reinsurer for approval. In such cases, the
Reinsurer's approval is required for the reinsurance to be reinstated. Upon the
Reinsurer's approval, the Ceding Company must pay the Reinsurer all back
reinsurance premiums in the same manner as the Ceding Company received insurance
premium under the policy.
C. Nonforfeiture Reinsurance Termination
If the Ceding Company has been requested to reinstate a policy that was
reinsured while on extended term or reduced paid-up, then such reinsurance will
terminate and either automatic or facultative reinstatement procedures will be
followed.
ARTICLE X
EXPENSES
The Ceding Company must pay the expense of all medical examinations, inspection
fees and other charges in connection with the issuance of the insurance.
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ARTICLE XI
CLAIMS
A. Liability
If the Ceding Company is liable for insurance benefits on a policy reinsured
under this Agreement, the Reinsurer shall be liable for its portion of the
reinsurance on that policy, as described in Schedule A. All reinsurance claim
settlements will be subject to the terms and conditions of the particular
contract under which the Ceding Company is liable.
B. Notification
When the Ceding Company is advised of a claim, the Reinsurer must be notified
promptly.
C. Claim Payment
1. Automatic Reinsurance on a Risk
If a claim is made on a risk reinsured automatically under this Agreement and is
not contested by the Ceding Company, Reinsurer will abide by the issue as the
Ceding Company settles it. Copies of proofs or other written matters relating to
any claim reimbursements under this Agreement shall be furnished to the
Reinsurer upon written request. The Ceding Company will receive payment of the
reinsurance proceeds from the Reinsurer when the Ceding Company makes the
settlement of the policy proceeds and delivers a copy of the proof of death,
check copy or proof of payment and the claimant's statement to the Reinsurer.
2. Facultative Reinsurance on a Risk
If a claim is made on a risk reinsured facultatively under this Agreement, the
Ceding Company shall submit to Reinsurer all relevant and/or requested documents
and papers related to the claim along with Ceding Company's recommendation.
Ceding Company shall then wait five days from the date of mailing during which
time Reinsurer shall have the opportunity to advise Ceding Company of its
consent or disagreement with the recommendation. In the event Reinsurer does not
contact Ceding Company within the five-day period, Reinsurer will abide by the
issue as it is settled by the Ceding Company. The Ceding Company will receive
payment of the reinsurance proceeds from Reinsurer when Ceding Company makes the
settlement of the policy proceeds and delivers proof of payment to the
Reinsurer.
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3. Payment of Reinsurance Proceeds
Payment of life reinsurance proceeds will be made in a single sum regardless of
the Ceding Company's mode of settlement with the payee.
D. Contested Claims
The Ceding Company must promptly notify the Reinsurer of any intent to contest a
claim reinsured under this Agreement or to assert defenses. If the Ceding
Company's contest of such claim results in the increase or reduction of
liability, the Reinsurer will share in this increase or reduction. The
Reinsurer's share of the increase or decrease shall be proportional to their
share of the net amount at risk on the date of death of the insured.
If the Reinsurer should decline to participate in the contest or assertion of
defenses, the Reinsurer will then release all of the liability by paying the
Ceding Company the full amount of reinsurance and not sharing in any subsequent
increase or reduction in liability.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or reduced because of misstatement of age or sex
established after the death of the insured, the Reinsurer will share with the
Ceding Company in this increase or reduction.
F. Routine Expenses
The Ceding Company will pay the routine expenses incurred in connection with
settling claims. These expenses may include compensation of agent and employees
and the cost of routine investigations such as inspection reports.
G. Non-Routine Expenses
The Reinsurer will share with the Ceding Company all expenses that are not
routine. Expenses that are not routine are those directly incurred in connection
with the contest or the possibility of a contest of a claim or the assertion of
defenses, including legal expenses. The expenses will be shared in proportion to
the net amount at risk for the Ceding Company and Reinsurer. However, if the
Reinsurer has released the liability under Section D of this Article, the
Reinsurer will not share in any expenses incurred after the date of the
Reinsurer's release.
X. Xxxxxxxxxxx Period
If, during the contestable period, Ceding Company is notified of the death of
the
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insured, the Ceding Company will investigate the case.
I. Return of Premium for Misrepresentations and Suicides
If a misrepresentation or misstatement on an application or a death of an
insured risk by suicide results in the Ceding Company returning the policy
premiums to the policy owner rather than paying the policy benefits, the
Reinsurer will refund all of the reinsurance premiums it received on that policy
to the Ceding Company. This refund given by the Reinsurer will be in lieu of all
other reinsurance benefits payable on that policy under this Agreement.
ARTICLE XII
EXTRA-CONTRACTUAL DAMAGES
In no event will the Reinsurer have any liability for any extra-contractual
damages which are awarded against the Ceding Company as a result of acts,
omissions or course of conduct committed by the Ceding Company in connection
with the insurance reinsured under this Agreement.
The Reinsurer does recognize that circumstances may arise under which the
Reinsurer, in equity, should share, to the extent permitted by law, in paying
certain assessed damages. Such circumstances are difficult to define in advance,
but involve those situations in which the Reinsurer was an active party in the
act, omission or course of conduct which ultimately results in the assessment of
such damages. The extent of such sharing is dependent on good faith assessment
of culpability in each case, but all factors being equal, the division of any
such assessment would be in the proportion of total risk accepted by each party
for the plan of insurance involved.
ARTICLE XIII
INSPECTION OF RECORDS
Each party will have the right, at any reasonable time and upon reasonable
notice, to inspect the other party's books and documents that relate to
reinsurance under this Agreement.
ARTICLE XIV
DAC TAX
Section 1.848-2(g)(8) Election
A. The Reinsurer and the Ceding Company hereby agree to the following pursuant
to section 1.848-2(g)(8) of the Income Tax Regulations issued December 1992
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under Section 848 of the Internal Revenue Code of 1986, as amended. This
election shall be effective for 1993 and for all subsequent taxable years for
which this Agreement remains in effect.
B. The terms used in this Article are defined by reference to Regulation
Section 1.848-2 in effect December 1992.
C. The party with net positive consideration for this Agreement for each
taxable year will capitalize specified policy acquisition expenses with respect
to this Agreement without regard to the general deduction limitation of section
848(c)(1).
D. Both parties agree to exchange information pertaining to the amount of net
consideration under this Agreement each year to ensure consistency or as
otherwise required by the Internal Revenue Service.
E. The Ceding Company will submit to the Reinsurer by May 1st of each year a
schedule of the 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 such net consideration will be
reported in the tax return for the preceding calendar year.
F. The Reinsurer may contest such calculation by providing an alternative
calculation to the Ceding Company in writing within 30 days of receipt of Ceding
Company's calculation. If the Reinsurer does not notify the Ceding Company,
Reinsurer will report the net consideration as determined by the Ceding Company
in the tax return for the preceding calendar year.
G. If the Reinsurer contests the Ceding Company's calculation of the net
consideration, both 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
their alternative calculation. If both parties reach agreement on an amount of
net consideration, both parties shall report such amount in their respective tax
returns for the previous calendar year.
ARTICLE XV
INSOLVENCY
A. Insolvency of Reinsurer
If the Reinsurer becomes insolvent as determined by the Department of Insurance
responsible for such determination, amounts due the Reinsurer will be paid net
of the terms of this Agreement and directly to the liquidator, receiver, or
statutory successor without decrease. The Ceding Company may recapture all
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reinsurance ceded under this Agreement without charge or penalty as of the date
Reinsurer fails to meet its obligations under this Agreement.
B. Insolvency of Ceding Company
If Hartford Life Insurance Company, Hartford Life and Accident Insurance Company
or Hartford Life and Annuity Insurance Company should become insolvent, all
reinsurance under this Agreement covering risks ceded by that particular company
will be payable by Reinsurer directly to that Company's liquidator, receiver or
statutory successor, on the basis of the liability of that Company under the
policy or policies reinsured and without diminution because of the insolvency of
the Company. However, in the event of such insolvency, the liquidator, receiver
or statutory successor will give written notice of a pending claim against
Ceding Company on the reinsured policy. It will do so within a reasonable time
after the claim is filed in the insolvency proceedings. During the pendency of
such a claim, Reinsurer may investigate the claim and may, at its own expense,
interpose any defense or defenses which it may deem available to the insolvent
Company, its liquidator, receiver or statutory successor, in the proceedings
where the claim is to be adjudicated.
The expense thus incurred by Xxxxxxxxx will be chargeable against the insolvent
Company, subject to court approval, as part of the expense of liquidation to the
extent of a proportionate share of the benefit which may accrue to the insolvent
Company solely as a result of the defense undertaken by Reinsurer.
Where two or more Reinsurers are involved in the same claim and a majority in
interest elect to interpose defense to the claim, the expense will be
apportioned in accord with the terms of the reinsurance agreement as though the
expense had been incurred by the insolvent Company.
It is agreed that the insolvency of any one of the Hartford Life Companies shall
not affect this Agreement as it applies to the remaining solvent companies.
ARTICLE XVI
OFFSET
Any debts or credits, matured or unmatured, liquidated or unliquidated,
regardless of when they arose or were incurred, in favor of or against either
the Ceding Company or the Reinsurer 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 shall be set off, and only the balance
shall be allowed or paid. In the event the Ceding Company becomes insolvent,
offsets shall be allowed in accordance with applicable law.
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ARTICLE XVII
ARBITRATION
Any disagreement, controversy, or claim arising out of or relating to this
Agreement between the Reinsurer and any one of the Hartford Life Companies will
be settled by arbitration. To initiate arbitration, one of the parties will
notify the other, in writing, of its desire to arbitrate. The notice will state
the nature of the dispute and the desired remedies. The party to which the
notice is sent will respond to the notification in writing within 10 days of
receipt of the notice. At that time, the responding party will state any
additional dispute it may have regarding the subject of arbitration. There will
be three arbitrators chosen among current or retired officers of life insurance
companies other than parties or their affiliates. Each party to the dispute will
appoint one of the arbitrators and these two arbitrators will select the third
arbitrator. In the event that either party should fail to choose an arbitrator
within 30 days following a written request by the other party to do so, the
requesting party may choose two arbitrators who shall in turn choose a third
arbitrator before entering upon arbitration. If the two arbitrators fail to
agree upon the selection of a third arbitrator within 30 days following their
appointment, each arbitrator shall nominate three candidates within 10 days
thereafter, two of whom the other shall decline, and the decision shall be made
by drawing lots.
Arbitration will be conducted in accordance with the Commercial Arbitration
Rules of the American Arbitration Association that will be in effect on the date
of delivery of demand for 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 life insurance and life reinsurance industry rather than
solely on a strict interpretation of the applicable law. The site of any
arbitration will be determined by a majority vote of the arbitrators. All
expenses and fees of the arbitration will be borne equally by the parties unless
otherwise decreed by the arbitrators.
The award agreed to by a majority of the arbitrators will be final and binding
and there will be no appeal from their decision. Judgment may be entered upon it
in any court having jurisdiction.
ARTICLE XVIII
TERMINATION
A. Each Hartford Life Insurance Company and the Reinsurer may terminate this
Agreement as it applies to the new business of each by giving (90) ninety days'
written notice of termination. The day the notice is deposited in the mail
addressed to the Home Office, or to an Officer of each party, will be the first
day of the (90) ninety-day period. In addition, this Agreement may be terminated
immediately for the acceptance of new reinsurance by either party if one of the
17
parties materially breaches this Agreement, or becomes insolvent or financially
impaired.
B. During the (90) ninety-day period, this Agreement will continue to be in
force between the terminating parties.
C. After termination, the terminating parties shall remain liable under the
terms of this Agreement for all automatic reinsurance that becomes effective
prior to termination of this Agreement. After termination the terminating
parties shall be liable for all automatic and facultative reinsurance which has
an application date on or before the effective date of the termination.
D. Termination by one or two of the Hartford Life Companies shall not affect
this Agreement as it relates to the non-terminating Hartford Life Company (ies).
ARTICLE XIX
ENTIRE AGREEMENT AND AMENDMENT
A. Entire Contract
This Agreement with any attached Schedules and Exhibits, shall constitute the
entire agreement between the parties with respect to the business being
reinsured hereunder and there are no understandings between the parties other
than as expressed herein.
B. Modifications
Any modification or change to the provisions of this Agreement shall be null and
void unless set forth in a written amendment to the Agreement which is signed by
all parties to the amendment.
C. Severability
In the event that any provision or term of this agreement shall be held by any
court, arbitrator, or administrative agency to be invalid, illegal or
unenforceable, all of the other terms and provisions shall remain in full force
and effect to the extent that their continuance is practicable and consistent
with the original intent of the parties. In addition, if any provision or term
is held invalid, illegal or unenforceable, the parties will attempt in good
faith to renegotiate the Agreement to carry out the original intent of the
parties.
18
ARTICLE XX
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after October 15, 1999.
ARTICLE XXI
EXECUTION
SECURITY LIFE OF DENVER INSURANCE COMPANY
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title [ILLEGIBLE] Title Vice President of Business
Operations
Date August 25, 2000 Date 9/12/00
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxxxxx X. Xxxxxxxx
------------------------------ ------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxxxxx X. Xxxxxxxx, FSA, MAAA
Vice President Individual Life Director, Individual Life
Product & Marketing Pricing
Date July 24, 2000 Date July 25, 2000
19
SCHEDULE A
SPECIFICATIONS
TYPE OF BUSINESS Individual life insurance issued by the Ceding Company
REINSURANCE POOL SHARE Reinsurer shall a [Redacted] the amount at risk
on a policy reinsured by the Pool.
FACULTATIVE OBLIGATORY [Redacted]
FACULTATIVE SHOPPING
POLICY SIZE [Redacted]
PLANS OF INSURANCE
POLICY TYPES RIDERS
-----------------------------------------------------------------------------
Interest Sensitive Whole Life Other Covered Insured (UL)
Stag Universal Life Term Rider (on base or other
insured)
ART, 5, and 10 Yr Term (NY) Additional Insurance Benefit Rider
(ISWL)
Stag Variable Life Increase in Coverage Option Rider
(VL)
Artisan Variable Life Cost of Living Rider (UL)
Protector Variable Life Waiver of Premium
One Year Term ADB Benefit (not reinsured)
Accumulator Variable Life Deduction Amount Waiver Rider
Life Solutions I UL Waiver of Monthly Deduction
Life Solutions II UL Additional Purchase Option Rider
LBS I UL
Universal Life V
20 Year Term
Single Premium Variable Life
(fully underwritten only)
MINIMUM REINSURANCE
CESSION [Redacted]
LEAD REINSURER [Redacted]
SCHEDULE B
BASIS OF REINSURANCE
LIFE PRODUCTS
Life reinsurance will be on the yearly renewable term (YRT) basis for the amount
at risk on the portion of the policy reinsured by Reinsurer. The amount at risk
on a policy shall be the death benefit of the policy less the amount retained by
the Ceding Company, less the cash value under the policy. The basis for
determining Reinsurer's liability shall be the amount at risk used for
computation of the reinsurance premium.
EXCHANGES
Exchanges from one single life plan reinsured under this agreement to a
different single life plan, for the purpose of allowing the policyowner premium
flexibility (UL) or potentially higher investment return (VL), will be reinsured
hereunder as new business at first year reinsurance rates if the new plan has
been fully underwritten and has new contestable and suicide exclusion periods.
Otherwise, the reinsurance rates will be point-in-scale.
RESERVE BASIS
[Redacted]
EXHIBIT II
SINGLE LIFE RETENTION, BINDING, AND ISSUE LIMITS
Effective 10/15/99
RETENTION LIMIT
[ILLEGIBLE]
AUTOMATIC BINDING LIMIT (EXCLUDES RETENTION)
[ILLEGIBLE]
AUTOMATIC ISSUE LIMIT (INCLUDES RETENTION)
[ILLEGIBLE]
AUTOMATIC PROCESSING LIMIT (INCLUDES RETENTION)
[ILLEGIBLE]
FACULTATIVE OBLIGATORY AUTOMATIC BINDING LIMIT (EXCLUDES RETENTION)
[ILLEGIBLE]
FACULTATIVE OBLIGATORY AUTOMATIC ISSUE LIMIT (INCLUDES RETENTION)
[ILLEGIBLE]
JUMBO LIMIT
Issue Age Standard -- Table F Table G -- Table P
[Redacted]
AMENDMENT NUMBER I
This Amendment, effective October 15, 1999, is made, by and between the three
Hartford Life Companies, HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND
ACCIDENT INSURANCE COMPANY, and HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(collectively referred to as the Ceding Company) AND EMPLOYERS REASSURANCE
CORPORATION (referred to as the Reinsurer). It is attached to and becomes a part
of the Automatic Yearly Renewable Term
Reinsurance Agreement dated October 15,
1999.
The Reinsurer and Ceding Company agree that the Ceding Company's Foreign
National business will be reinsured under the terms of this Agreement except for
the following differences:
EXECUTION
This Amendment does not alter, amend or modify the
Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the
Reinsurance Agreement together with all amendments
and supplements thereto. It is executed in duplicate by:
EMPLOYERS REASSURANCE CORPORATION
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title [ILLEGIBLE] Title [ILLEGIBLE]
Date 8-8-00 Date August 8, 2000
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxx Xxxxxxxx
------------------------------ ------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxx Xxxxxxxx, FSA, MAAA
Vice President Individual Life Director Individual Life
Product & Marketing Product Development
Date 4/27/2000 Date 4/27/2000
FOREIGN NATIONAL EXHIBIT I
UNDERWRITING GUIDELINES FOR FOREIGN NATIONAL BUSINESS
[Redacted]
FOREIGN NATIONAL EXHIBIT II
FOREIGN NATIONAL LOADINGS PER $1,000 OF FACE AMOUNT
[Redacted]
REGION COUNTRIES LOADINGS
--------------------------------------------------------------------------------
Latin America & Argentina
Caribbean Brazil
Chile
Costa Rica
Dominican Republic
Mexico
Panama
Paraguay
Uruguay
Venezuela
Cayman Islands
Belize
Virgin Islands
Western Europe Austria
Belgium
Denmark
Finland
France
Germany (Reunified)
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
Far East Hong Kong
Japan
Malaysia
Philippines
Singapore
Taiwan
South Korea
Australia
AMENDMENT NUMBER 2
This Amendment, effective October 15, 1999, is made by and between the three
Hartford Life Companies, HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND
ACCIDENT INSURANCE COMPANY, and HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(collectively referred to as the Ceding Company) AND SECURITY LIFE OF DENVER
INSURANCE COMPANY (referred to as the Reinsurer). It is attached to and becomes
a part of the Automatic Yearly Renewable Term
Reinsurance Agreement dated
October 15, 1999.
EXECUTION
This Amendment does not alter, amend or modify the
Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the
Reinsurance Agreement together with all amendments
and supplements thereto. It is executed in duplicate by:
SECURITY LIFE OF DENVER INSURANCE COMPANY
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
---------------------------- ----------------------------
Title [ILLEGIBLE] Title Vice President of Business
Operations
Date August 31, 2000 Date 9/11/00
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxx Xxxxxxxx
---------------------------- ----------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxx Xxxxxxxx, FSA, MAAA
Vice President Individual Director Individual Life
Life Product & Marketing Product Development
Date July 24, 2000 Date July 25, 2000
EXHIBIT I
TABLE 2 TO STANDARD PROGRAM EFFECTIVE MARCH 15, 2000
(SECURITY LIFE OF DENVER INSURANCE COMPANY WILL NOT BE PARTICIPATING IN THIS
PROGRAM)
ELIGIBILITY REQUIREMENTS
[Redacted]
ALLOCATION OF CASES AMONG THE PROGRAM, CEDING COMPANY'S RETENTION, AND THE POOL
[Redacted]
AMENDMENT NUMBER 3
This Amendment is made by and between the three Hartford Life Companies,
HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY,
and HARTFORD LIFE AND ANNUITY INSURANCE COMPANY (collectively referred to as the
Ceding Company) AND SECURITY LIFE OF DENVER INSURANCE COMPANY (referred to as
the Reinsurer). It is attached to and becomes a part of the Automatic Yearly
Renewable Term Reinsurance Agreement dated October 15, 1999 (referred to as the
Reinsurance Agreement).
1. Effective October 1, 2000, Schedule A of the Reinsurance Agreement shall be
amended to reflect the inclusion of the Guaranteed Cost of Insurance
Benefit Rider. This Rider shall be
A revised Schedule
A is attached and shall replace the existing Schedule A.
2. This Amendment does not alter, amend or modify the Reinsurance Agreement
other than as set forth in this Amendment, and it is subject otherwise to
all the terms and conditions of the Reinsurance Agreement together with all
amendments and supplements thereto.
SECURITY LIFE OF DENVER INSURANCE COMPANY
By /s/ [ILLEGIBLE] Attest /s/ Xxxxx Xxxxx
------------------------------ ------------------------------
Title Executive Director & Senior Title Vice President of Business
Actuary Operations
Date January 8, 2002 Date 1/11/02
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxx Xxxxxxxx
------------------------------ ------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxx Xxxxxxxx, FSA, MAAA
Vice President Director
Individual Life Product & Individual Life Product
Marketing Development
Date 2/13/2001 Date 2/16/2001
SCHEDULE A
SPECIFICATIONS
(OCTOBER 1, 2000)
TYPE OF BUSINESS Individual life insurance issued by
the Ceding Company
REINSURANCE POOL SHARE Reinsurer shall automatically of
the amount at risk on a policy
reinsured by the Pool.
FACULTATIVE OBLIGATORY [Redacted]
FACULTATIVE SHOPPING
POLICY SIZE [Redacted]
PLANS OF INSURANCE
POLICY TYPES RIDERS
--------------------------------------------------------------------------------------------
Interest Sensitive Whole Life Other Covered Insured (UL)
Stag Universal Life Term Rider (on base or other insured)
ART, 5, and 10 Yr Term (NY) Additional Insurance Benefit Rider (ISWL)
Stag Variable Life Increase in Coverage Option Rider (VL)
Artisan Variable Life Cost of Living Rider (UL)
Protector Variable Life Waiver of Premium
One Year Term ADB Benefit (not reinsured)
Accumulator Variable Life Deduction Amount Waiver Rider
Life Solutions I UL Waiver of Monthly Deduction
Life Solutions II UL Additional Purchase Option Rider
LBS I UL Guaranteed COI Benefit Rider
Universal Life V
20 Year Term
Single Premium Variable Life
(fully underwritten only)
MINIMUM REINSURANCE CESSION [Redacted]
LEAD REINSURER [Redacted]
AMENDMENT NUMBER 4
This Amendment is made by and between the three Hartford Life Companies,
HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY,
and HARTFORD LIFE AND ANNUITY INSURANCE COMPANY (collectively referred to as the
Ceding Company) AND SECURITY LIFE OF DENVER INSURANCE COMPANY (referred to as
the Reinsurer). It is attached to and becomes a part of the Automatic Yearly
Renewable Term Reinsurance Agreement dated October 15, 1999 (referred to as the
Reinsurance Agreement).
In all other respects, said Agreement shall remain unchanged.
SECURITY LIFE OF DENVER INSURANCE COMPANY
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title Executive Director & Senior Title Senior Vice President
Actuary
Date May 6, 2003 Date 5/6/03
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxxxxx X. Xxxxxxxx
------------------------------ ------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxxxxx X. Xxxxxxxx, FSA, MAAA
Senior Vice President Assistant Vice President
Individual Life Product &
Marketing
Date 3/4/2003 Date 2/28/2003
AMENDMENT NUMBER 5
This is an amendment to the Automatic and Facultative Yearly Renewable Term
Reinsurance Agreement between Hartford Life and Accident Insurance Company,
Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company
(collectively referred to as the Ceding Company), and Security Life of Denver
Insurance Company, (referred to as the Reinsurer), dated October 15, 1999. The
parties agree to the following:
Effective November 1, 2002 for Facultative business and December 1, 2002 for
Automatic business, the Ceding Company will no longer cede and Reinsurer will no
longer accept reinsurance under this Agreement, except for policies with
facultative coverage wherein the original reinsurance application was submitted
prior to November 1, 2002 and the policy was actually issued after that date.
Reinsurance that is now in force under this Agreement will continue to be
governed by the terms and conditions of the Agreement until the termination or
expiration of all such reinsurance.
EXECUTION
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all amendments
and supplements thereto. It is executed in duplicate by:
SECURITY LIFE OF DENVER INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title: Vice President Title: [ILLEGIBLE]
Date: June 15, 2004 Date: June 15, 2004
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx Attest: /s/ Xxx Xxxxxxxx
------------------------------ ------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxx Xxxxxxxx, FSA, MAAA
Senior Vice President Assistant Vice President
Individual Life Product &
Marketing
Date: 6/7/04 Date: 6/10/2004
AMENDMENT 6
EFFECTIVE JUNE 25, 2002
TO THE
AUTOMATIC AND FACULTATIVE YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 15, 1999
BETWEEN
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
AND
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
SECURITY LIFE OF DENVER INSURANCE COMPANY
("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Reinsurer has agreed to automatically reinsure a policy that did
not otherwise qualify for Automatic Reinsurance when it was issued.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. The policy listed below shall be reinsured, on an Automatic
Reinsurance basis, under the terms of the Agreement.
3. Capitalized terms not defined in this Amendment shall have the
meaning set forth in the Agreement.
4. Except as herein amended, all other terms and conditions of the
Agreement shall remain unchanged.
Single Life Excess Treaty -- Effective 10/15/1999
Between HLA, HLIC, HLAIC and Security Life of Denver
Amendment #6 - Effective 06/25/2002
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below.
SECURITY LIFE OF DENVER INSURANCE COMPANY
By Hannover Life Reassurance Company of America by Power of Attorney
By: /s/ [ILLEGIBLE] Attest: /s/ Xxxx Xxxxxxx
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: Xxxx Xxxxxxx
Title: Senior Vice President Title: Vice President
Date: 11/30/11 Date: 11/30/11
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actuary Individual Life Individual Life Product
Product Management Management
Date: 10/28/2011 Date: 11/14/2011
Single Life Excess Treaty -- Effective 10/15/1999
Between HLA, HLIC, HLAIC and Security Life of Denver
Amendment #6 - Effective 06/25/2002
2
