Exhibit 10.11
-------------
REINSURANCE AGREEMENT
(HEREAFTER REFERRED TO AS THE "AGREEMENT")
BETWEEN
LINCOLN MEMORIAL LIFE INSURANCE COMPANY
0000 Xxxxx Xxxxxxx xx Xxxxx Xxxxxxx
XXXXXX, XXXXX 00000
(HEREAFTER REFERRED TO AS THE "COMPANY")
AND
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
000 X. Xxxxxxxx Xxx., Xxxxx 0000
XXXXXXX, XXXXXXX 00000
(HEREAFTER REFERRED TO AS THE "REINSURER")
TERM: CONTINUOUS WITH NO RECAPTURE
TYPE: COINSURANCE
OUR REF: HA-LMLI-01
TABLE OF CONTENTS
-----------------
ARTICLE PAGE
------- ----
PREAMBLE...............................................................................1
I DEFINITIONS............................................................................1
II PREMIUM AND LOSSES; REIMBURSEMENT AMOUNT...............................................3
III COMMENCEMENT AND TERMINATION; RECAPTURE................................................4
IV POLICY REDUCTIONS AND TERMINATIONS.....................................................5
V EXPENSE ALLOWANCES.....................................................................5
VI REINSURANCE PREMIUMS...................................................................5
VII EXTRA CONTRACTUAL OBLIGATIONS; LITIGATION..............................................7
VIII REINSURER'S RIGHT OF NOTICE OF UNUSUAL PRACTICES.......................................7
IX ADMINISTRATION OF THE POLICIES.........................................................8
X REPRESENTATIONS, WARRANTIES AND COVENANTS..............................................8
XI LOSS SETTLEMENTS......................................................................10
XII COINSURANCE; RESERVES.................................................................11
XIII ERRORS AND OMISSIONS..................................................................11
XIV INSOLVENCY............................................................................11
XV TREASURY REGULATION SECTION 1.848-2 (g)(8) JOINT ELECTION.............................12
XVI CHANGE OF CONTROL OF THE COMPANY......................................................13
XVII TAXES.................................................................................13
XVIII ACCESS TO RECORDS.....................................................................13
XIX ARBITRATION...........................................................................14
XX GOVERNING LAW.........................................................................15
XXI SUBROGATION...........................................................................15
XXII ENTIRE AGREEMENT......................................................................15
XXIII POLICY CHANGES........................................................................15
XXIV OFFSET................................................................................15
XXV WAIVER; AMENDMENT.....................................................................16
XXVI ASSIGNMENT; BINDING EFFECT............................................................16
XXVII SEVERABILITY..........................................................................16
XXVIII NOTICES...............................................................................16
XXIX DURATION OF AGREEMENT.................................................................17
XXIX EXECUTION.............................................................................17
SCHEDULE A - RETENTION AND REINSURANCE LIMITS
SCHEDULE B - EXPENSE ALLOWANCES
SCHEDULE C - PROCEDURES FOR REPORTING
SCHEDULE D - REINSURANCE PREMIUM RATES
SCHEDULE E - THIRD PARTY REINSURANCE LISTING
SCHEDULE F - PRIVACY POLICY
REINSURANCE AGREEMENT
(HEREAFTER REFERRED TO AS THE "AGREEMENT")
between
LINCOLN MEMORIAL LIFE INSURANCE COMPANY
(HEREAFTER REFERRED TO AS THE "COMPANY")
AND
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
(HEREAFTER REFERRED TO AS THE "REINSURER")
PREAMBLE
--------
In consideration of the mutual covenants hereinafter contained the parties
hereto agree as follows:
ARTICLE I - DEFINITIONS
-----------------------
"Affiliate" means a Person controlling, controlled by or under common
control of the Company.
"Authorized Control Level RBC" has the meaning assigned to such term in the
Model Acts of the National Association of Insurance Commissioners.
"Business Day" means a day other than a Saturday, Sunday, or any day on
which the principal commercial banks located in the city of the Company's
home office are authorized or obligated to close under the laws of that
state.
"Claim" means a claim made to the Company by a policyholder, insured,
certificate holder or dependent thereof who is entitled to coverage under a
Policy for death benefits or other benefits contractually covered by such
Policy, and not excluded by such Policy. A Claim is incurred on the date
benefits arise under the respective Policy that such benefits are sought.
"Closing Date" means a date mutually acceptable to the Company and the
Reinsurer.
"Company" means Lincoln Memorial Life Insurance Company, a Texas
corporation.
"Contested Claim" has the meaning assigned to such term in Article XI
hereof.
"Control" means the ownership of 50% or more of the issued and outstanding
voting securities of a Person.
1
"Effective Date" means August 1, 2001.
"Expense Allowance" means the allowance for expenses as described in
Schedule B hereto.
"Extra Contractual Obligations" means any and all costs, expenses, damages,
liabilities or obligations of any kind or nature (including without
limitation attorneys fees, consequential and incidental damages, and
punitive and exemplary damages) which are incurred by the Company and arise
out of, result from or relate to any alleged or actual act or omission,
other than any inadvertent or clerical delay, error or omission, whether or
not in bad faith, intentional, willful, negligent, reckless, careless or
otherwise, of the Company and its respective employees, agents and
representatives in connection with a Policy, and which are not contractually
covered by the terms and conditions of such Policy, whether or not such acts
or omissions occurred before or after the Effective Date.
"Loss" means a Claim that is actually paid by the Company. A Loss is
incurred on the date of death of a covered Person under a Policy.
"Loss Adjustment Expenses" means all payments (other than for employee
wages, salaries and fringe benefits) of fees and expenses associated with
investigation, litigation (including without limitation reasonable
attorney's fees) and settlement of Claims.
"Material Adverse Effect" means a material adverse effect on the condition
(financial or otherwise), business, assets or results of operations with
respect to the Company or the Policies taken as a whole.
"Person" means an individual, firm, corporation or entity.
"Policy" means the pre-need life insurance policies, annuity contracts, riders,
and binders listed on Schedule A attached hereto and incorporated herein by
reference, which were and will be marketed and sold by National Prearranged
Services and issued by the Company or reinsured by the Company from Memorial
Service Life Insurance Company and New Life Insurance Company prior to, on and
after the Effective Date.
"Premium" means, for each Policy, the premium required by such Policy to be
paid and which is actually collected and received by the Company, less
premium returned to a Person after actual collection and receipt by the
Company due to rescission or cancellation of a Policy or reductions or
terminations in coverage or benefits under a Policy.
"Reinsurer" means Hannover Life Reassurance Company of America, a Florida
corporation.
"Reinsurer's Proportionate Share" means, for Premium under a Policy and for
each Loss, 90% of such Premium and 90% of such Loss, less Third Party
Reinsurance applicable to such Loss.
2
"SAP" means the statutory accounting practices and procedures permitted or
prescribed by the Texas Insurance Department.
"Services" means all of the usual and customary servicing and administrative
functions and duties associated with the Policies, including but not limited
to, premium payments; Claims administration; customer services for insureds,
owners, beneficiaries, agents and other interested Persons; file and record
maintenance and administration including system maintenance and
administration; billing and collection of Premium; maintenance of Policy
financial information; and payment of agents' commissions related to
Policies.
"Third Party Reinsurance" means reinsurance of Policies by reinsurers other
than the Reinsurer, which are listed on Schedule E hereto.
"Total Adjusted Capital" has the meaning assigned to such term in the Model
Acts of the National Association of Insurance Commissioners.
"Transaction" means (x) the sale, transfer, assignment, conveyance or other
disposition of 50% or more of the Company's issued and outstanding shares of
voting capital stock to a Person which is not an Affiliate; (y) the merger
of the Company with and into a Person which is not an Affiliate whereby the
Company is not the surviving entity in the merger; and (z) the sale,
transfer, assignment, conveyance or other disposition of all or
substantially all of the Company's assets to a Person which is not an
Affiliate, whether by assumption reinsurance, indemnity reinsurance or
otherwise.
"Transaction Notice" has the meaning assigned to such term in Article XVI
hereof.
ARTICLE II - PREMIUM AND LOSSES; REIMBURSEMENT AMOUNT
-------------------------------------------------------------------------
On the Effective Date, the Company shall cede to the Reinsurer, and the
Reinsurer agrees to reinsure from the Company, the Reinsurer's Proportionate
Share of Premium and Losses under Policies. The Reinsurer agrees to
indemnify the Company for such Losses to the extent of the Reinsurer's
Proportionate Share thereof. The Company and the Reinsurer acknowledge and
agree that the reinsurance provided to the Company by the Reinsurer
hereunder is on an original terms basis on the underlying Policies reinsured
hereby; provided, however, that the Reinsurer shall have no liability
whatsoever for dividends declared, payable and paid under Policies.
On the Closing Date, a Reimbursement Amount shall be calculated equal to the
net amount of the monthly reinsurance settlements from September 1, 2000 to
the Effective Date accumulated at interest from one month after the close of
each reinsurance settlement month to the Closing Date at an annualized rate
of 6%. The settlement for each month is the net of the following items:
3
i. Amounts due Reinsurer - Reinsurer's Proportionate Share of:
a. Premiums
b. Decrease in Policy loans
c. Interest payments on Policy loans
ii. Amounts due Company - Reinsurer's Proportionate Share of:
a. Surrender payments
b. Death benefits net of recoveries from Third Party
Reinsurance
c. Reinsurance premiums paid by the Company for Third
Party Reinsurance
d. Expense Allowances per Schedule B
e. Premium tax
f. Agent commissions and marketing fees
g. Increase in Policy loans
The Company hereby directs the Reinsurer to pay a Reimbursement Amount to
North America Life Insurance Company of Texas within 5 days after the Closing
Date. The Company agrees that the Reimbursement Amount is an authorized
payment to North America Life Insurance Company of Texas for payments
previously made to Company by North America Life Insurance Company of Texas
based on arms length negotiations and pursuant to a prior reinsurance agreement
regarding the Policies. The Company acknowledges and agrees that payment of
the Reimbursement Amount by the Reinsurer to North America Life Insurance
Company of Texas satisfies and discharges the Reinsurer's contractual
obligation hereunder to pay any initial cash settlement, and, upon payment
by the Reinsurer to North America Life Insurance Company of Texas of the
Reimbursement Amount, the Company hereby unconditionally and irrevocably
(i) releases the Reinsurer from and against any liability with respect to
the initial cash settlement, (ii) waives any claim against the Reinsurer to
make such additional payment of a ceding commission, and (iii) indemnifies
the Reinsurer from and against any costs, expenses, damages, liabilities or
fees (including attorney's fees) incurred by the Reinsurer arising from any
action against the Reinsurer to make such payment.
ARTICLE III - COMMENCEMENT AND TERMINATION; RECAPTURE
-----------------------------------------------------
The Reinsurer shall continue to provide reinsurance only for Losses paid by
the Company under Policies so long as such Policies continue to be in force
and this Agreement continues to be in effect as to such Policies. The
Reinsurer shall have no liability hereunder for Losses incurred prior to
the Effective Date other than Losses included as part of the Initial Cash
Settlement.
The Policies reinsured under this Agreement may not be recaptured by the
Company.
4
ARTICLE IV - POLICY REDUCTIONS AND TERMINATIONS
-----------------------------------------------
The Reinsurer's liability hereunder shall not be increased by reason of the
inability of the Company to collect Third Party Reinsurance, which may
become due after the Effective Date. Reductions and terminations of coverage
and benefits under Policies shall reduce or terminate the Reinsurer's
liability hereunder in a corresponding amount as of the same date.
ARTICLE V - EXPENSE ALLOWANCES
------------------------------
For performing the Services from and after the Effective Date, the Reinsurer
agrees to pay to the Company Expense Allowances on the terms and provisions
set forth in Schedule B.
ARTICLE VI - REINSURANCE PREMIUMS
---------------------------------
1. Life Reinsurance. The annual premiums shall be computed in
accordance with the coinsurance rates contained in the attached
Schedule D.
2. Accidental Death Benefit. Annual premiums for this benefit are
included in the premiums for the base plan rates shown in Schedule D.
3. Associated Riders. If any other types of riders are reinsured under
this Agreement, premiums and allowances (if any) will be included
in Schedules B and D.
4. Preliminary Term Insurance. If the Company issues a policy with
preliminary term, the reinsurance premiums for the term period will
be at the same rate as charged by the Company, less commissions at
the same percentage as paid by the Company, for the life
reinsurance and all reinsured benefits. For the first policy year
after the preliminary term, premiums and allowances for the life
reinsurance and benefits will be computed at regular first policy
year rates.
5. Payments. The payment of reinsurance premiums, by the Company to
the Reinsurer, shall be a condition precedent to the liability of
the Reinsurer. The Reinsurer shall have the right to terminate the
reinsurance on risks for which reinsurance premiums are in default
by giving 30 days' written notice of termination to the Company. At
the close of the last day of this 30 day notice period, all of the
Reinsurer's liability for risks subject to the termination notice,
plus for the risk on which premiums went into default during the
30 day notice period, shall terminate. Notwithstanding termination
or reinsurance as provided by this provision, the Company shall
continue to be liable to the Reinsurer for all unpaid premiums
earned by the Reinsurer under this Agreement.
5
The Company may reinstate such terminated reinsurance by paying in full,
within 60 days of the termination date, all unpaid premiums for the
reinsurance, which was in force prior to its termination. The effective date
of reinstatement shall be the day the Reinsurer received all required
premiums. However, there shall be no reinstatement on any risk on which the
Company incurred a claim for insurance after the reinsurance terminated.
6. Procedure for Payment.
a) First Year and Renewal Business. On or before the 30th
day after the close of each month, the Company will
submit to the Reinsurer a statement of account,
substantially in accordance with Schedule C showing the
premium due on new reinsurance effected in the preceding
month(s), the modal renewal reinsurance premium due, and
any other pertinent data mutually agreed upon by the
parties hereto. If a statement shows that a new reinsurance
premium balance is payable to the Reinsurer, the Company
will include with the statement its payment for the
amount of the net balance due the Reinsurer.
b) Adjustments. If any change is made in the Company's
policy that affects the reinsurance, the Company will
provide written notice, on a form mutually agreed upon,
to the Reinsurer. If an adjustment to the premium is to
be made, and a refund is due the Company, it will be
included as an adjustment to the regular monthly
statement prepared by the Company. Policy fees will be
pro-rated or refunded on termination.
c) Upon receipt of a report, the Reinsurer may, in its
discretion and upon reasonable information and belief,
contest the information contained in the report. If the
Reinsurer does not contest a report, the Reinsurer shall,
within 10 Business Days of the receipt of such report,
remit all amounts due and payable by the Reinsurer to the
Company, if any, as indicated by such report, net of all
amounts payable to the Company by the Reinsurer, if any,
as indicated by such report. If the Reinsurer so contests,
the reinsurer shall deliver to the Company written notice
thereof stating the reasons upon which the Reinsurer
disputes the report, and the parties shall use their best
efforts to resolve the dispute within 20 days thereafter.
If the parties fail to resolve such dispute within such
period, the dispute shall be resolved by arbitration as
provided herein.
d) During any periods after payment hereunder becomes due,
interest shall accrue on the net balance due and payable
for the applicable calendar month. Such interest shall
accrue at a rate equal 8% per annum for the period from
the settlement date through and including the actual
payment date.
7. Electronic Data Transmission. If the Company chooses to report its
reinsurance transactions via electronic media, the Company shall
consult with the Reinsurer to determine the
6
appropriate reporting format. Should the Company subsequently
desire to make changes in the data format or the code structure,
the Company shall communicate such changes to the Reinsurer prior
to the use of such changes in reports to the Reinsurer.
8. Adjustment of Age or Sex. If the insured's age or sex was
misstated, the Company and the Reinsurer will share the adjustment
in proportion to the amount of liability of each at the time of
issue.
ARTICLE VII - EXTRA CONTRACTUAL OBLIGATIONS; LITIGATION
-------------------------------------------------------
The Reinsurer shall have no liability for Extra Contractual Obligations or
Loss Adjustment Expenses, unless the Reinsurer was an active party or
directed, consented to, or ratified the act, omission or course of conduct
which ultimately resulted in assessment of Extra Contractual Obligations or
Loss Adjustment Expenses against the Company, in which case the Reinsurer
shall be liable for the Reinsurer's Proportionate Share of Extra Contractual
Obligations and Loss Adjustment Expenses, and shall indemnify and defend the
Company if the Company has acted at the Reinsurer's direction.
Prior to the Closing Date, the Company covenants to the Reinsurer and agrees
to provide the Reinsurer with a written instrument setting forth all pending
and, to the knowledge of the Company, threatened litigation against the
Company relating to the Policies stating therein the basis for which such
litigation arose or, to the knowledge of the Company, is threatened. The
Company and the Reinsurer agree that the Reinsurer shall have no liability
for Extra Contractual Obligations or Loss Adjustment Expenses with respect
to any such litigation, whether pending or threatened as of the Closing Date
or arising before or after the Effective Date.
ARTICLE VIII - REINSURER'S RIGHT OF NOTICE OF UNUSUAL PRACTICES
---------------------------------------------------------------
The parties acknowledge and agree that the Reinsurer has placed its utmost
good faith and confidence in the Company, and the parties assume that, except
as otherwise notified by the Company, the underwriting of the Policies and
performance of Services and other insurance practices employed by the Company
with respect to the Policies will be consistent with past practices of the
Company. Where the Company does deviate from its underwriting guidelines
with respect to the Policies, the Company agrees to notify the Reinsurer
in writing of such practices. The parties agree that the Company's failure
to so notify the Reinsurer, or the Reinsurer's failure or refusal to
accept in writing such deviations in practice, will result in the Reinsurer
having no liability hereunder with respect to Losses caused by such
deviations in practice.
7
ARTICLE IX - ADMINISTRATION OF THE POLICIES
-------------------------------------------
As of the Effective Date, the Company shall perform the Services following
commercially reasonable practices for as long as the Reinsurer is required
to provide reinsurance hereunder.
If the Reinsurer reasonably believes that the Company has failed to perform
the Services, the Reinsurer shall notify the Company in writing of such
failure and the Company shall have 30 days to demonstrate to the reasonable
satisfaction of the Reinsurer that its Services are being performed in a
commercially reasonable manner or to cure such failure to the reasonable
satisfaction of the Reinsurer.
Failure to follow current underwriting practices or to perform other
insurance practices in a commercially reasonable manner shall be considered
a breach of a covenant by the Company under this Agreement.
ARTICLE X - REPRESENTATIONS, WARRANTIES AND COVENANTS
-----------------------------------------------------
The Company represents and warrants to the Reinsurer that:
1. There are no governmental or regulatory consents, approvals or
other authorizations necessary or required by law, regulation,
order, decree, judgment or otherwise to be obtained to consummate
the transactions contemplated by this Agreement; and
2. Except for this Agreement and Third Party Reinsurance, there is no
reinsurance agreement that provides reinsurance coverage on the
Policies; and
3. All of the Policies have been filed with and approved by the
applicable regulatory authorities as required by applicable law,
rule or regulation and none of the Policies are the subject of any
pending or, to the knowledge of the Company, threatened litigation,
arbitration, action, proceeding, rule, order or decree the basis
of which includes, but is not limited to, discriminatory practices
in the sales and/or rates of the Policies; and
4. Schedule A is a true and complete list of all Policies and contains
no accident or health insurance policies, contracts, riders, and
binders; and
5. The Company has no knowledge of any fact or condition that Company
reasonably believes could have a Material Adverse Effect; and
6. No writing to be furnished pursuant hereto or previously furnished
to the Reinsurer contains or will contain any untrue statement of
material fact or omits or will omit to state the new material fact
required to make the statements herein not misleading; and
8
7. The Company is a corporation duly incorporated, validly existing
and in good standing under the laws of Texas and has all licenses,
permits or other authority necessary or required by applicable law,
rule or regulation to carry on all business activities presently
conducted by it (including without limitation the performance of
the Services), and the execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby by the
Company have been approved by all necessary corporate action on the
part of the Company and will not violate the Articles of
Incorporation or bylaws of the Company or conflict with or violate
any provision of or result in the acceleration of any indebtedness
under or result in a breach under any other contract, agreement or
instrument to which the Company is a party or is subject to any
judgment, order, decree, law, ordinance, rule, or regulation
applicable to the Company or its properties or assets; and
8. All existing Policy loans under Policies were properly made in
accordance with applicable Policy terms and provisions relating to
Policy loans; and
9. This Agreement and the agreements and covenants herein of the
Company constitute valid and binding obligations of the Company,
enforceable against it in accordance with their respective terms.
The Company covenants to the Reinsurer and agrees:
1. To request promptly any consents, approvals or other authorizations,
if necessary or required, with respect to this Agreement and to
pursue diligently such request; and
2. To maintain as valid and in good standing all its licenses, permits
or other authority necessary or required by applicable law, rule or
regulation to perform the Services; and
3. Not to reinsure or attempt to reinsure any of the Policies except
as are reinsured by Third Party Reinsurance or pursuant to this
Agreement; and
4. To correct immediately all Policy loans made, and to be made in the
future, that did not or do not comply with Policy terms and
provisions relating to Policy loans; and
5. Not to replace or rewrite the Policies, whether directly or
indirectly, with any other company. Any Policy issued by the Company
as a replacement to a Policy reinsured hereunder shall automatically
be reinsured on the same terms and conditions as the policy it
replaces. The Reinsurer will have the right to review and approve
any replacement policy or coverages proposed by the Company as part
of a replacement program.
The Company agrees to indemnify and hold harmless the Reinsurer from and
against any and all losses, damages, costs, expenses or liabilities suffered
or incurred by the Reinsurer arising out of a breach or threatened breach by
the Company of the representations, warranties and covenants of the
9
Company contained in this Article X. The provisions of this Article X shall
survive termination of this Agreement.
The Reinsurer agrees to indemnify and hold harmless the Company from and
against any and all losses, damages, costs, expenses or liabilities suffered
or incurred by the Company arising out of a breach or threatened breach by
the Reinsurer of the representations, warranties and covenants of the
Reinsurer contained in this Article X. The provisions of this Article X
shall survive termination of this Agreement.
ARTICLE XI - LOSS SETTLEMENTS
-----------------------------
The Reinsurer shall accept the decision of the Company with respect to a
Claim and the incurrence of a Loss, except as otherwise provided herein. The
Company shall deliver written notice to the Reinsurer of each Claim that
would, if paid, cause the Reinsurer's liability hereunder to be $25,000
prior to such Claim actually being paid. The Company shall deliver to the
Reinsurer all documents, reports and other information in the possession of
or known by the Company relating to such Claim to permit the Reinsurer to
evaluate the Claim and advise the Company in writing with respect to payment
of the Claim. If the Reinsurer fails to advise the Company in writing within
seven (7) Business Days after the Company's delivery to the Reinsurer of the
documents, reports and other information relating to such Claim, the Company
shall pay the Claim and the Reinsurer shall be estopped from denying
reinsurance liability hereunder for such Loss.
The Company may, in its discretion, deliver written notice to the Reinsurer
of each Claim as to which the Company is uncertain, or has reasonable cause
to believe, that such Claim is or may not be properly payable. In addition,
the Company shall deliver immediately such a notice to the Reinsurer as to
each Claim denied in whole or in part by the Company if a notice of
litigation or threatened litigation is filed with the Company relating to
such denied Claim (each Claim as to which such a notice is delivered is
referred to herein as a "Contested Claim").
The Company agrees to deliver immediately to the Reinsurer all documents,
reports and other information relating to such Contested Claim to permit the
Reinsurer to evaluate the Contested Claim and advise the Company in writing
with respect to payment of the Contested Claim. In the event the Company
complies with the Reinsurer's advice with respect to a Contested Claim, and
Extra Contractual Obligations later arise with respect to such Contested
Claim, the Reinsurer shall share in the Extra Contractual Obligations and
Loss Adjustment Expenses to the extent of the Reinsurer's Proportionate
Share of a Loss hereunder, but if the Company fails to give such notice or
to comply with such advice, the Reinsurer shall not share in any of the
Extra Contractual Obligations. In no event shall the Reinsurer be liable for
any Extra Contractual Obligations based upon acts, omissions, facts,
circumstances or events which occurred prior to the Effective Date. Prior to
rendering any advice with respect to a Contested Claim, the Reinsurer may
discharge its liability under this Agreement by paying the Reinsurer's
Proportionate Share of the Contested Claim and shall have no further
liability with respect thereto.
10
Upon reasonable information and belief, the Company may rescind a Policy
and return Premium with respect thereto. Within 5 days thereafter, the
Company shall deliver written notice to the Reinsurer of each such
rescission, together with all documents, reports and other information in
the possession of or known by the Company relating to such rescission.
The Reinsurer will advise the Company in writing with respect to its
concurrence or dissention with the rescission within 7 Business Days after
the Company delivers its written notice to the Reinsurer regarding the
rescission. In the event the Reinsurer concurs with the Company's
rescission, the Reinsurer shall immediately remit to the Company the
Reinsurer's Proportionate Share of Premium applicable to the rescinded
Policy, and if Extra Contractual Obligations later arise due to such
rescission, the Reinsurer shall share in the Extra Contractual Obligations
and Loss Adjustment Expenses to the extent of the Reinsurer's Proportionate
Share of a Loss hereunder. In the event the Reinsurer dissents with the
Company's rescission, the Reinsurer shall immediately remit to the Company
the Reinsurer's Proportionate Share of the Claim applicable to the rescinded
Policy, and if Extra Contractual Obligations later arise due to such
rescission, the Reinsurer shall have no liability for such Extra Contractual
Obligations or Loss Adjustment Expenses relating thereto.
The parties agree that the Company's intentional or grossly negligent acts or
omissions with respect to this Article XI shall relieve the Reinsurer of any
liability hereunder with respect to any such Claim, Loss or Policy.
ARTICLE XII - COINSURANCE; RESERVES
-----------------------------------
The reinsurance hereunder shall be on a quota share coinsurance basis. The
Reinsurer shall not be liable for, or participate in, any increase in
reserves arising from a change by the Company in assumptions or methods,
including without limitation, the reserve interest rate or the mortality
assumptions for the Policies.
ARTICLE XIII - ERRORS AND OMISSIONS
-----------------------------------
Any inadvertent or clerical delay, error or omission made by any party
hereto in connection with this Agreement shall not relieve either party from
any liability of such party hereunder had such inadvertent or clerical
delay, error or omission not occurred. The parties agree to cure all
inadvertent and clerical delays, errors and omissions immediately upon
discovery thereof.
ARTICLE XIV - INSOLVENCY
------------------------
In the event of insolvency of the Company, all payments of the Reinsurer for
Losses shall be payable directly to the Company, or to the Company's
liquidator, receiver, conservator or statutory successor, without diminution
because of the insolvency of the Company, except where this Agreement
specifically provides for another payee of such Losses in the event of the
insolvency of the Company.
11
The Company or its liquidator, receiver, conservator or statutory successor
shall give written notice to the Reinsurer of the pendency of a Claim,
indicating the Policy under which such Claim is pending, within a reasonable
time after such Claim is filed in the insolvency proceeding. During the
pendency of such Claim the Reinsurer may investigate such Claim and
interpose, at its own expense, in the proceeding where such Claim is to be
adjudicated, any defense or defenses that it may deem available to the
Company or its liquidator, receiver, conservator or statutory successor.
The expense thus incurred by the Reinsurer shall be chargeable, subject to
the approval of the insolvency court, against the Company as part of the
administrative expenses of the estate to the extent of a pro rata share of
the benefit which may accrue to the Company solely as a result of the defense
undertaken by the Reinsurer.
ARTICLE XV - TREASURY REGULATION SECTION 1.848-2(g)(8) JOINT ELECTION
---------------------------------------------------------------------
The Company and the Reinsurer hereby agree to the following pursuant to
Section 1.848-2(g)(8) of the Income Tax Regulations issued December 1992,
under Section 848 of the Internal Revenue Code of 1986, as amended. This
election shall be effective for the taxable year ended December 31, 2001 and
for all subsequent taxable years for which this Agreement remains in effect
unless such election is terminated by mutual written agreement of the
parties hereto with the consent, if required, of the Commissioner of the
Internal Revenue Service.
As used in this Article XV, the term "party" will refer to either the
Company or the Reinsurer as appropriate.
The terms used in this Article XV are defined by reference to Treasury
Regulation Section 1.848-2 in effect as of December 29, 1992. The term "net
consideration" will refer to either net consideration as defined in Treasury
Regulation Section 1.848-2(f) or "gross premium and other consideration" as
defined in Treasury Regulation Section 1.848-2(b) as appropriate.
Both parties agree to identify this Agreement as one for which the joint
election under Treasury Regulation Section 1.848-2(g)(8) has been made in a
schedule attached to their respective federal income tax returns for the
taxable period ended December 31, 2001.
The party with the positive net 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 Section 848(c)(1).
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.
The Company will submit a schedule to the Reinsurer by July 1st of each year
of its calculation of
12
the net consideration for the preceding calendar year. This schedule of
calculations will be accompanied by a statement signed by an officer of the
Company stating that the Company will report such net consideration in its
tax return for the preceding calendar year.
The Reinsurer may contest such calculation by providing an alternative
calculation to the Company in writing within 45 days of the Reinsurer's
receipt of the Company's calculation. If the Reinsurer does not so
notify the Company, the Reinsurer will report the net consideration as
determined by the Company in the Reinsurer's tax return for the previous
year.
If the Reinsurer disputes the Company's calculation of the net consideration,
the parties will act in good faith to reach an agreement as to the correct
amount within 45 days of the date the Reinsurer submits its alternative
calculation. If the 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. If the parties fail to reach
agreement on an amount of net consideration, the dispute shall be resolved
by arbitration as provided herein.
ARTICLE XVI - CHANGE OF CONTROL OF THE COMPANY
----------------------------------------------
Within 5 days after the Company enters into a written agreement with
respect to a Transaction (as defined below), the Company shall deliver to the
Reinsurer written notice of such Transaction (the "Transaction Notice"). For
purposes of the Article XVI, the term "Transaction" means (x) the sale,
transfer, assignment, conveyance or other disposition of 50% or more of the
Company's issued and outstanding shares of voting capital stock to a Person
which is not an Affiliate; (y) the merger of the Company with and into a
Person which is not an Affiliate whereby the Company is not the surviving
entity in the merger; and (z) the sale, transfer, assignment, conveyance or
other disposition of all or substantially all of the Company's assets to a
Person which is not an Affiliate, whether by assumption reinsurance,
indemnity reinsurance or otherwise.
ARTICLE XVII - TAXES
--------------------
The Company shall not claim a deduction in respect of the ceded Premium
hereunder when making tax returns, other than income or profits tax returns,
to any state or territory of the United States of America or the District of
Columbia.
ARTICLE XVIII - ACCESS TO RECORDS
---------------------------------
Within 5 days after receipt by the Company of written notice from the
Reinsurer, the Company shall make available to the Reinsurer, and the
Reinsurer shall have the right to inspect and audit (at the Reinsurer's
expense), through its authorized representatives, during normal business
hours, the books, records and papers of the Company pertaining to the
reinsurance provided hereunder and all Claims made and Losses paid in
connection therewith. If after such inspection and audit, Reinsurer
reasonably believes that Reinsurer has paid (or been asked to pay) Losses
that should not be reimbursed or paid under this Agreement, then Reinsurer
shall so notify Company, in writing, of its
13
audit conclusions. After receipt of the written notice, Company shall have
15 days to cure the problems alleged by Reinsurer or explain why the audit
conclusions reached by Reinsurer are incorrect. If the audit concerns raised
by Reinsurer are not resolved in a mutually acceptable way within the
15 days allotted, either party may invoke the arbitration provisions in
Article XIX or take other actions provided in this Agreement. During the
dispute resolution efforts, Reinsurer shall not be obligated to pay, or
reimburse the specific claims or Losses in dispute, but shall have an ongoing
obligation to make all other payments due, and not in dispute, under this
Agreement unless ordered otherwise by the board of arbitrators.
ARTICLE XIX - ARBITRATION
-------------------------
Any dispute arising out of this Agreement, whether arising before or after
termination, which is not resolved by the parties shall be submitted to
arbitration for decision by a board of arbitrators composed of two arbiters
and an umpire, meeting in a neutral location as determined by the
arbitration panel. Arbitration shall be commenced by one party delivering to
the other party(ies) written notice of arbitration, which notice shall set
forth the nature of the dispute and the relief sought. Within 30 days
after receipt of such notice, each party to the dispute shall appoint
an arbiter, and within 30 days thereafter, such arbiters shall appoint
the umpire. If any party fails to select an arbiter within the period
prescribed, the other party(ies) shall select the arbiter(s). If the
arbiters so selected fail to agree upon the appointment of an umpire
within such 30 day period, each arbiter shall propose three names, of whom
the other shall decline two, and the decision shall be made by drawing lots.
The members of the board of arbitrators shall be active or retired,
disinterested officers of life, accident and health insurance or reinsurance
companies.
The arbitration hearing shall be commenced within 30 days after the
selection of the umpire. During the pendency of the arbitration, the parties
may provide the board of arbitrators, as well as the other party(ies),
briefs and memorandum of law supporting their respective position in the
dispute. The board of arbitrators shall consider all such briefs and
memoranda as well as testimony at the arbitration.
The board of arbitrators shall make its decision with due regard to
applicable law and to custom and practice in the insurance and reinsurance
industry. The board of arbitrators shall issue its decision in writing based
upon a hearing in which evidence may be introduced without following strict
rules of evidence but in which cross-examination and rebuttal shall be
allowed. The board shall make its decision within 60 days following
the termination of the hearing. The majority decision of the board shall be
final, binding, nonappealable and conclusive upon all parties to the
proceeding. The board's decision may be entered as a judgment in any court
having jurisdiction thereof.
Each party shall bear the expenses of its own arbiter and the party against
which the decision of the arbitration board is rendered shall bear the
expense of the umpire, unless the arbitration board, in its discretion,
otherwise allocates expenses. Any remaining costs of the arbitration
proceedings shall be allocated by the arbitration board.
14
This Article XIX shall survive any termination of this Agreement.
ARTICLE XX - GOVERNING LAW
--------------------------
This Agreement shall be governed by and construed in accordance with the
laws of Texas without regard to applicable principles of conflicts of law.
ARTICLE XXI - SUBROGATION
-------------------------
The Reinsurer shall be credited with the Reinsurer's Proportionate Share of
subrogation (i.e., reimbursement obtained or recovery made by the Company,
less the actual cost, excluding salaries of officials and employees of the
Company and sums paid to attorneys as retainer, of obtaining such
reimbursement or making such recovery) on account of Losses. The Company
hereby agrees to enforce its rights to subrogation relating to any expenses
if requested to do so by the Reinsurer (at the expense of the Reinsurer),
and to prosecute all claims arising out of such rights.
ARTICLE XXII - ENTIRE AGREEMENT
-------------------------------
This Agreement constitutes the entire agreement and understanding among the
parties hereto with respect to the subject matter hereof. There are no
agreements or understandings among the parties with respect to the subject
matter hereof other than as expressed in this Agreement.
ARTICLE XXIII - POLICY CHANGES
------------------------------
To the extent of any benefit or Premium change in a Policy (other than a
change that occurs automatically in accordance with Policy provisions), the
Company shall immediately deliver written notice thereof to the Reinsurer.
Except for Policy changes required by state or federal law or regulation,
any such proposed change shall not be effective until approved in writing by
the Reinsurer. If the Reinsurer does not accept the change in writing, the
Reinsurer shall have no liability for Losses, Loss Adjustment Expenses,
Extra Contractual Obligations, Expense Allowances, Premium taxes or other
costs or expenses whatsoever that arise from such changes.
ARTICLE XXIV - OFFSET
---------------------
The Company or the Reinsurer shall have, and may exercise at any time and
from time to time, the right to offset any balance or balances, whether on
account of Premiums or Losses or otherwise, due from one party with respect
to this Agreement.
15
ARTICLE XXV - WAIVER; AMENDMENT
-------------------------------
Except as provided herein, any waiver by any party hereto of a breach by the
other party of any provision of this Agreement shall not operate or be
construed as a continuing waiver or a waiver of any subsequent breach by
such party. Except as otherwise provided herein, no waiver shall be valid
unless in writing and signed by the party exercising such waiver. Any
modification or amendment of this Agreement shall be in writing and signed
by the parties hereto.
ARTICLE XXVI - ASSIGNMENT; BINDING EFFECT
-----------------------------------------
The rights, duties and obligations hereunder of the parties hereto may not be
assigned or delegated by any party hereto to any other Person without the
prior written consent of the parties hereto; provided, however, that the
Reinsurer may retrocede any portion of its liability hereunder. This
Agreement shall be binding upon and inure to the benefit of the parties'
respective successors and permitted assigns.
ARTICLE XXVII - SEVERABILITY
----------------------------
The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of the remainder of this Agreement,
and any such invalid or unenforceable provision shall be severable from the
remainder of this Agreement.
ARTICLE XXVIII - NOTICES
------------------------
Any notice or other communication which is required or permitted to be
delivered to any party hereunder shall be in writing and deemed delivered if
sent by government-sponsored mail; an internationally-recognized overnight
carrier with confirmation receipt of delivery; certified mail, return
receipt requested; or facsimile with confirmation receipt of successful and
complete transmission addressed as follows:
If to the Reinsurer: Hannover Life Reassurance Company of America
000 X. Xxxxxxxx Xxx., Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Facsimile: 407/648-1468
Attn: Xx. Xxxxx X. Xxxxxxxx
If to the Company: Lincoln Memorial Life Insurance Company
1250 South Capitol of Xxxxx Xxxxxxx
Xxxxxxxx 0, Xxxxx 000
Xxxxxx, Xxxxx 00000
Facsimile:
--------------------
Attn:
-------------------------
16
ARTICLE XXIX - DURATION OF AGREEMENT
------------------------------------
This Agreement is unlimited in duration, but may be amended by mutual
consent of the Company and the Reinsurer. It may be terminated as to new
reinsurance by either party, by giving 90 days' written notice to the other,
prior to the effective date of termination. Termination as to new
reinsurance does not affect existing reinsurance. Existing reinsurance will
remain in force until termination of the Company's Policies on which the
reinsurance is based, in accordance with the terms of this Agreement.
ARTICLE XXX - EXECUTION
-----------------------
The parties, by and through each of their respective authorized
representatives, have executed this Agreement as of the date below written.
LINCOLN MEMORIAL LIFE INSURANCE COMPANY
Austin, Texas
Taxpayer I.D. # 00-0000000
NAIC Company Code: 69833
Date: 9-19-01
-----------------------------------------------------------------
By: /s/ L. Xxx Xxxxxxxxx
-----------------------------------------------------------------
Title: Vice President
-----------------------------------------------------------------
Witness: /s/ Xxxxxx Xxxxx
-----------------------------------------------------------------
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
Orlando, Florida
Taxpayer I.D. # 00-0000000
NAIC Company Code: 88340
Date: September 20, 2001
-----------------------------------------------------------------
By: /s/ Xxxx X. Xxxx
-----------------------------------------------------------------
Title: Vice President
-----------------------------------------------------------------
Witness: /s/ Xxxx Xxxxx
-----------------------------------------------------------------
17
SCHEDULE A
----------
RETENTION AND REINSURANCE LIMITS
--------------------------------
Part I Retention Limits of Lincoln Memorial Life Insurance Company
A) Life
Ten percent (10%) Quota Share of $25,000 issue amount.
B) Flexible Premium Annuity
Ten percent (10%) Quota Share
C) Disability Waiver of Premium
Not Applicable
D) Accidental Death Benefit
Same as Life
E) Dependents' Service Benefit
Same as Life
Part II Automatic Binding Limits
A) Life
Ninety percent (90%) Quota Share of $25,000, to a maximum
automatic limit of $22,500 to the Reinsurer, any one life.
B) Flexible Premium Annuity
Ninety percent (90%) Quota Share
18
C) Disability Waiver of Premium
Not Applicable
D) Accidental Death Benefit
Same as Life
E) Dependents' Service Benefit
Same as Life
Part III Business Covered
The preceding schedule limits apply to insured lives, surnames A
through Z inclusive, on residents of the United States, for those
policies as listed in the attached Schedule I. Refer to Exhibit C
for policies which are excluded.
A detailed listing of the in force Policies and their policy
numbers reinsured as of the Effective Date is attached hereto.
Part IV Additional Conditions
A) Minimum Cession - Not Applicable
B) Jumbo Limit - Not Applicable
C) Recapture - Not Permitted
D) Currency - U.S. Dollars
19
Coinsurance Agreement
============================================================================
SCHEDULE I
A. Policies Subject to Reinsurance
1. Policies issued under the Plans of Insurance described below are
eligible for reinsurance under this Agreement.
Lincoln Memorial Life Plans
---------------------------
230 Ord Life (LML.WL-6/94) Male
231 Ord Life (LML.WL-6/94) Female
250 2 Yr Graded Ben WL - Male
251 2 Yr Graded Ben WL - Female
305 5 Pay AB Incr - Male
305S 5 Pay AB Incr - Male
306 5 Pay AB Incr - Female
306S 5 Pay AB Incr - Female
310 10 Pay AB Incr - Male
310S 10 Pay AB Incr - Male
311 10 Pay AB Incr - Female
311S 10 Pay AB Incr - Female
355 5 Pay AB Indx - Male
355S 5 Pay AB Indx - Male
356 5 Pay AB Indx - Female
356S 5 Pay AB Indx - Female
360 10 Pay AB Indx - Male
360S 10 Pay AB Indx - Male
361 10 Pay AB Indx - Female
361S 10 Pay AB Indx - Female
403CA 3 Pay AB Level - Male
404CA 3 Pay AB Xxxxx - Xxxxxx
000 0 Xxx XX Xxxxx - Xxxx
405CA 5 Pay AB Xxxxx - Xxxx
000X 0 Xxx XX Xxxxx - Xxxx
406 5 Pay AB Level - Female
406CA 5 Pay AB Level - Female
406S 5 Pay AB Xxxxx - Xxxxxx
000 00 Xxx XX Xxxxx - Xxxx
410CA 10 Pay AB Xxxxx - Xxxx
000X 00 Xxx XX Xxxxx - Xxxx
411 10 Pay AB Level - Female
411CA 10 Pay AB Level - Female
411S 10 Pay AB Xxxxx - Xxxxxx
000XX 00 Xxx XX Xxxxx - Xxxx
============================================================================
Page 20
Coinsurance Agreement
============================================================================
421CA 20 Pay AB Level - Female
503 3 Pay FIB - Male
503CA 3 Pay FIB - Male
503S 3 Pay FIB - Male
504 3 Pay FIB - Female
504CA 3 Pay FIB - Female
504S 3 Pay FIB - Female
505 5 Pay FIB - Male
505CA 5 Pay FIB - Male
505S 5 Pay FIB - Male
506 5 Pay FIB - Female
506CA 5 Pay FIB - Female
506S 5 Pay FIB - Female
507 100 Month Pay FIB - Male
507CA 100 Month Pay FIB - Male
507S 100 Month Pay FIB - Male
508 100 Month Pay FIB - Female
508CA 100 Month Pay FIB - Female
508S 100 Month Pay FIB - Female
510 10 Pay FIB - Male
510CA 10 Pay FIB - Male
510S 10 Pay FIB - Male
511 10 Pay FIB - Female
511CA 10 Pay FIB - Female
511S 10 Pay FIB - Female
518 18 Month Pay FIB - Male
518CA 18 Month Pay FIB - Male
518S 18 Month Pay FIB - Male
519 18 Month Pay FIB - Female
519CA 18 Month Pay FIB - Female
519S 18 Month Pay FIB - Female
520 20 Pay FIB - Male
520CA 20 Pay FIB - Male
520S 20 Pay FIB - Male
521 20 Pay FIB - Female
521CA 20 Pay FIB - Female
521S 20 Pay FIB - Female
524 24 Month Pay FIB - Male
524S 24 Month Pay FIB - Male
525 24 Month Pay FIB - Female
525S 24 Month Pay FIB - Female
580 5 Pay FIB (Special) - Male
580S 5 Pay FIB (Special) - Male
581 5 Pay FIB (Special) - Female
581S 5 Pay FIB (Special) - Female
591 18 Mo Pay FIB (Special) - Male
591S 18 Mo Pay FIB (Special) - Male
============================================================================
Page 21
Coinsurance Agreement
============================================================================
592 18 Mo Pay FIB (Special) - Female
592S 18 Mo Pay FIB (Special) - Female
593 10 Pay FIB (Special) - Male
593S 10 Pay FIB (Special) - Male
594 10 Pay FIB (Special) - Female
594S 10 Pay FIB (Special) - Female
595 20 Pay FIB (Special) - Male
595S 20 Pay FIB (Special) - Male
596 20 Pay FIB (Special) - Female
596S 20 Pay FIB (Special) - Female
603S 3 Pay IDB - Male
604S 3 Pay IDB - Female
605S 5 Pay IDB - Male
606S 5 Pay IDB - Female
610S 10 Pay IDB - Male
611S 10 Pay IDB - Female
618S 18 Month Pay IDB - Male
619S 18 Month Pay IDB - Female
653 3 Pay FIB Indexed - Male
654 3 Pay FIB Indexed - Female
655 5 Pay FIB Indexed - Male
655S 5 Pay FIB Indexed - Male
656 5 Pay FIB Indexed - Female
656S 5 Pay FIB Indexed - Female
660 10 Pay FIB Indexed - Male
660S 10 Pay FIB Indexed - Male
661 10 Pay FIB Indexed - Female
661S 10 Pay FIB Indexed - Female
668 18 Month Pay FIB Indexed - Male
668S 18 Month Pay FIB Indexed - Male
669 18 Month Pay FIB Indexed - Female
669S 18 Month Pay FIB Indexed - Female
673 3 Pay ALI - Male
674 3 Pay ALI - Female
675 5 Pay ALI - Male
675S 5 Pay ALI - Male
676 5 Pay ALI - Female
676S 5 Pay ALI - Female
680 10 Pay ALI - Male
680S 10 Pay ALI - Male
681 10 Pay ALI - Female
681S 10 Pay ALI - Female
688 18 Month Pay ALI - Male
688S 18 Month Pay ALI - Male
689 18 Month Pay ALI - Female
689S 18 Month Pay ALI - Female
760 5 Pay MIB - Male
760CA 5 Pay MIB - Male
============================================================================
Page 22
Coinsurance Agreement
============================================================================
760S 5 Pay MIB - Male
761 5 Pay MIB - Female
761CA 5 Pay MIB - Female
761S 5 Pay MIB - Female
000 00 Xxxxx Xxx XXX - Male
762CA 18 Month Pay MIB - Male
762S 18 Month Pay MIB - Male
000 00 Xxxxx Xxx XXX - Female
763CA 18 Month Pay MIB - Female
763S 18 Month Pay MIB - Female
764 3 Pay MIB - Male
764CA 3 Pay MIB - Male
764S 3 Pay MIB - Male
765 3 Pay MIB - Female
765CA 3 Pay MIB - Female
765S 3 Pay MIB - Female
766 10 Pay MIB - Male
766S 10 Pay MIB - Male
767 10 Pay MIB - Female
767S 10 Pay MIB - Female
860 5 Pay FPA Male
860S 5 Pay FPA Male
861 5 Pay FPA Female
861S 5 Pay FPA Female
862 18 Month Pay FPA Male
862S 18 Month Pay FPA Male
863 18 Month Pay FPA Female
863S 18 Month Pay FPA Female
864 3 Pay FPA Male
864S 3 Pay FPA Male
865 3 Pay FPA Female
865S 3 Pay FPA Female
866 10 Pay FPA Male
866S 10 Pay FPA Male
867 10 Pay FPA Female
867S 10 Pay FPA Female
902 RPU - Male
902S RPU - Male
903 RPU - Female
903S RPU - Female
906 RPU - Male 7.0% CV 5.5% Res
906S RPU - 80 CSO Male 7.0% CV 5.5% Res
907 RPU - 80 CSO Female 7.0% CV 5.5% Res
907S RPU - 80 CSO Female 7.0% CV 5.5% Res
Memorial Service Life Plans
---------------------------
============================================================================
Page 23
Coinsurance Agreement
============================================================================
405 5 Pay AB Level - Male
406 5 Pay AB Xxxxx - Xxxxxx
000 00 Xxx XX Xxxxx - Xxxx
411 10 Pay AB Level - Female
503 3 Pay FIB - Male
504 3 Pay FIB - Female
505 5 Pay FIB - Male
506 5 Pay FIB - Female
507 100 Month Pay FIB - Male
508 100 Month Pay FIB - Female
510 10 Pay FIB - Male
511 10 Pay FIB - Female
518 18 Month Pay FIB - Male
519 18 Month Pay FIB - Female
520 20 Pay FIB - Male
521 20 Pay FIB - Female
524 24 Month Pay FIB - Male
525 24 Month Pay FIB - Female
760 5 Pay MIB - Male
761 5 Pay MIB - Female
000 00 Xxxxx Xxx XXX - Male
000 00 Xxxxx Xxx XXX - Female
764 3 Pay MIB - Male
765 3 Pay MIB - Female
766 10 Pay MIB - Male
767 10 Pay MIB - Female
============================================================================
Page 24
SCHEDULE B
----------
EXPENSE AND COMMISSION ALLOWANCES
---------------------------------
The Company will report to the Reinsurer using modal gross premiums as
collected. Coinsurance allowances are the Reinsurer's share of commissions,
expenses and premium taxes as outlined below. The Reinsurer will not
reimburse the Company for any dividends paid under the Policies.
The Reinsurer will reimburse the Company the Reinsurer's Proportionate Share
of the Expense Allowances set forth in Item 1 below, and Reinsurer will
reimburse the Company for the Reinsurer's Proportionate Share of the amounts
arising under Items 2 and 3:
1. Expense Year 1 Year 2 and after
------- ------ ----------------
Premium 3.5% 2.5%
Per Premium paying Policy in force $3.00/mo. $3.00/mo.
Per non-Premium paying Policy in force $1.50/mo. $1.50/mo.
Premium taxes actually paid* 2.0% 2.0%
* Includes provision for guaranty fund assessments and license
fees, arising from Premium under the Policies, actually paid by
the Company.
2. Agent commissions attributable to Premium and actually paid on the
the Policies according to the attached Exhibit B.
3. Marketing fees actually paid to North America Life Insurance Company
of Texas on the Policies according to the attached Exhibit A.
25
----------------------------------------------------------------------------------------------------------------------------------
Exhibit A
---------
----------------------------------------------------------------------------------------------------------------------------------
NAL Marketing Fees
----------------------------------------------------------------------------------------------------------------------------------
Plan Type Premium Issue Marketing Fee Plan Type Premium Issue Marketing Fee
Period Age Period Age
----------------------------------------------------------------------------------------------------------------------------------
Male Female Male Female
----------------------------------------------------------------------------------------------------------------------------------
SP 0-50 25.0% 30.0% MIB 60 months 0-50 3.0% 7.0%
----------------------------------------------------------------------------------------------------------------------------------
51-60 17.5% 23.5% 51-60 0.0% 2.0%
----------------------------------------------------------------------------------------------------------------------------------
61-70 15.5% 22.5% 61-70 0.0% 2.0%
----------------------------------------------------------------------------------------------------------------------------------
71-80 1.0% 8.0% 71-80 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
81-90 0.0% 0.0% 81-90 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
91+ 0.0% 0.0% 91+ n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
FIB/ALI 18 months 0-50 14.5% 19.5% 120 months 0-50 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
51-60 4.5% 13.0% 51-60 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
61-70 6.5% 14.5% 61-70 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
71-80 0.0% 4.0% 71-80 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
00-00 x/x x/x 00-00 x/x x/x
----------------------------------------------------------------------------------------------------------------------------------
91+ n/a n/a 91+ n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
36 months 0-50 16.0% 19.5% AB 60 months 0-50 9.0% 12.0%
----------------------------------------------------------------------------------------------------------------------------------
51-60 7.0% 12.0% 51-60 0.5% 5.0%
----------------------------------------------------------------------------------------------------------------------------------
61-70 32.5% 40.5% 61-70 21.0% 29.0%
----------------------------------------------------------------------------------------------------------------------------------
71-80 44.0% 56.5% 71-80 25.5% 39.0%
----------------------------------------------------------------------------------------------------------------------------------
81-90 36.5% 51.5% 81-90 12.0% 28.5%
----------------------------------------------------------------------------------------------------------------------------------
91+ 12.0% 31.5% 91+ n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
60 months 0-50 10.0% 14.0% 120 months 0-50 0.0% 0.5%
----------------------------------------------------------------------------------------------------------------------------------
51-60 1.5% 7.0% 51-60 3.0% 9.0%
----------------------------------------------------------------------------------------------------------------------------------
61-70 22.0% 31.0% 61-70 17.0% 28.0%
----------------------------------------------------------------------------------------------------------------------------------
71-80 26.5% 41.0% 71-80 7.0% 24.0%
----------------------------------------------------------------------------------------------------------------------------------
81-90 13.0% 30.5% 81-90 10.0% 31.5%
----------------------------------------------------------------------------------------------------------------------------------
91+ n/a n/a 91+ n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
84 months 0-50 0.0% 0.0% FPA 18 months 0-50 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
51-60 0.0% 3.5% 51-60 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
61-70 9.0% 17.0% 61-70 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
71-80 6.5% 20.5% 71-80 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
81-90 2.5% 20.2% 81-90 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
91+ n/a n/a 91+ n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
120 months 0-50 0.0% 0.0% 36 months 0-50 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
51-60 2.0% 8.0% 51-60 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
61-70 16.0% 27.0% 61-70 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
71-80 6.0% 23.0% 71-80 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
81-90 9.0% 30.5% 81-90 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
91+ n/a n/a 91+ 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
26
----------------------------------------------------------------------------------------------------------------------------------
Exhibit A
---------
----------------------------------------------------------------------------------------------------------------------------------
NAL Marketing Fees
----------------------------------------------------------------------------------------------------------------------------------
Plan Type Premium Issue Marketing Fee Plan Type Premium Issue Marketing Fee
Period Age Period Age
----------------------------------------------------------------------------------------------------------------------------------
Male Female Male Female
----------------------------------------------------------------------------------------------------------------------------------
MIB 18 months 0-50 3.0% 7.0% 60 months 0-50 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
51-60 0.0% 2.0% 51-60 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
61-70 0.0% 5.0% 61-70 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
71-80 0.0% 0.0% 71-80 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
81-90 n/a n/a 81-90 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
91+ n/a n/a 91+ 0.0% 0.0%
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
36 months 0-50 3.0% 7.0% 120 months 0-50 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
51-60 0.0% 2.0% 51-60 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
61-70 0.0% 5.0% 61-70 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
71-80 0.0% 0.0% 71-80 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
81-90 0.0% 0.0% 81-90 n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
91+ 0.0% 0.0% 91+ n/a n/a
----------------------------------------------------------------------------------------------------------------------------------
27
EXHIBIT B
COMMISSION SCHEDULE
The following Commission Allowance percentages apply to the Face Amount of
the policy. In addition to the amounts shown below a renewal Commission
Allowance shall be paid equal to 2% times the initial Face Amount of the
policy for a period of five years on anniversary of each inforce policy
except that no renewal commissions will be paid for policies issued under
the FPA plan. The term "n/a" below means that no Commission Allowance will
be paid.
Premium Issue Commission Allowance Premium Issue Commission Allowance
Plan Type Period Age Male Female Plan Type Period Age Male Female
SP 0-50 25.0% 25.0% MIB 60 months 0-50 24.0% 24.0%
51-60 25.0% 25.0% 51-60 20.5% 24.0%
61-70 21.0% 21.0% 61-70 17.0% 20.0%
71-80 21.0% 21.0% 71-80 n/a n/a
81-90 9.0% 15.0% 81-90 n/a n/a
91+ 0.0% 5.0% 91+ n/a n/a
FIB/ALI 18 months 0-50 25.0% 25.0% 120 months 0-50 10.0% 12.5%
51-60 25.0% 25.0% 51-60 8.5% 10.5%
61-70 21.0% 21.0% 61-70 6.0% 8.0%
71-80 16.0% 21.0% 00-00 x/x x/x
00-00 x/x x/x 81-90 n/a n/a
91+ n/a n/a 91+ n/a n/a
36 months 0-50 25.0% 25.0% AB 60 months 0-50 24.0% 24.0%
51-60 25.0% 25.0% 51-60 24.0% 24.0%
61-70 21.0% 21.0% 61-70 20.0% 20.0%
71-80 21.0% 21.0% 71-80 20.0% 20.0%
81-90 17.0% 17.0% 81-90 16.0% 16.0%
91+ 17.0% 17.0% 91+ n/a n/a
60 months 0-50 25.0% 25.0% 120 months 0-50 20.5% 24.0%
51-60 25.0% 25.0% 51-60 24.0% 24.0%
61-70 21.0% 21.0% 61-70 20.0% 20.0%
71-80 21.0% 21.0% 71-80 20.0% 20.0%
81-90 17.0% 17.0% 81-90 16.0% 16.0%
91+ n/a n/a 91+ n/a n/a
84 months 0-50 20.0% 25.0% FPA 18 months 0-50 5.5% 6.0%
51-60 19.5% 25.0% 51-60 5.5% 6.0%
61-70 21.0% 21.0% 61-70 5.0% 6.0%
71-80 21.0% 21.0% 71-80 4.5% 6.0%
81-90 17.0% 17.0% 81-90 1.5% 3.5%
91+ n/a n/a 91+ 0.0% 0.0%
120 months 0-50 20.5% 24.5% 36 months 0-50 5.5% 6.0%
51-60 25.0% 25.0% 51-60 5.0% 6.0%
61-70 21.0% 21.0% 61-70 4.5% 6.0%
71-80 21.0% 21.0% 71-80 1.5% 3.5%
81-90 17.0% 17.0% 81-90 n/a n/a
91+ n/a n/a 91+ n/a n/a
MIB 18 months 0-50 24.0% 24.0% 60 months 0-50 9.0% 10.0%
51-60 20.5% 24.0% 51-60 9.0% 10.0%
61-70 18.0% 20.0% 61-70 6.0% 10.0%
71-80 10.0% 15.0% 71-80 6.0% 10.0%
81-90 n/a n/a 81-90 2.0% 4.0%
91+ n/a n/a 91+ 0.0 0.0%
36 months 0-50 24.0% 24.0% 120 months 0-50 n/a n/a
51-60 20.5% 24.0% 51-60 n/a n/a
61-70 18.0% 20.0% 61-70 n/a n/a
71-80 10.0% 15.0% 71-80 n/a n/a
81-90 0.0% 5.0% 81-90 n/a n/a
91+ 0.0% 0.0% 91+ n/a n/a
28
EXHIBIT C
POLICIES EXCLUDED
Policies issued by the Ceder on and after the Coinsurance Effective Date
under the described insurance plans and within the described age ranges will
not be reinsured hereunder:
1. all 18 month pay products with issue ages over age 80;
2. 5 year pay MIB plans with issue ages over age 70;
3. 10 year pay MIB plans with issue ages over age 70; and
4. 10 year annuity plans (FPA) at all issue ages.
29
SCHEDULE C
----------
PROCEDURES FOR REPORTING
------------------------
The Company will maintain adequate records to administer the reinsurance
accounts and will cede reinsurance under this Agreement on a bordereau
self-administration basis. The Company will provide the Reinsurer with an
activity report on computer disk or other mutually agreed upon electronic
media, substantially in conformity with the following:
A) MONTHLY NEW BUSINESS AND RENEWALS PREMIUM STATEMENT
The Company will provide the Reinsurer with a report of all
reinsurance policies issued or renewing during the past month(s)
accompanied by reinsurance premiums for such policies which should
include the following:
1) The report should be segregated into first year issues and renewals and
each segment should state the gross premium, allowances and resultant
net premium due for each life insurance policy.
2) Premium due for supplemental benefits should be stated separately.
3) transaction code 11) plan of insurance
4) transaction effective date 12) policy amount
5) policy number 13) reinsurance amount
6) insured's name: surname 14) net amount at risk
first name 15) country/state of residence
middle initial 16) DWP, ADB, Rider reinsurance
7) date of birth amount (if applicable)
8) sex
9) issue age
10) policy issue date
B) MONTHLY ADJUSTMENT REPORT
The Company will report the details of all policy terminations and
changes on the reinsurance policies. In addition to the information in
A above, the report should provide information about the type of
change, the effective date, and the monetary result of the change with
respect to reinsurance. A report of commission chargebacks should be
included.
30
C) MONTHLY POLICY EXHIBIT REPORT
The Company will provide a summary of new issues, terminations,
recaptures, changes, death claims and reinstatements during the
month(s) and the inforce reinsurance at the end of the month.
D) QUARTERLY IN FORCE AND RESERVE LISTING
Within 30 days after the close of each calendar year, the Company will
furnish the Reinsurer with a list of reinsurance by policy that should
include the following information:
1) 5 through 16 in A) above
2) Reinsured statutory reserve
3) Summary of due, deferred and advance premiums
Within 15 days after the close of each calendar quarter, other than
year end, the Company will furnish the Reinsurer with a summary of the
reinsurance in force and statutory reserves.
22
SCHEDULE D
----------
REINSURANCE PREMIUM RATES
-------------------------
Part I Life
A) Coinsurance: Male/Female, Fully Insured Benefit Plan (FIB),
18 Month, 3 Year, 5 Year, and 10 Year Plans, Accelerated
Benefit Plan (AB), 5 Year and 10 Year.
Part II Disability Waiver of Premium
Not Applicable
Part III Accidental Death Benefit
Not Applicable
31
Memorial Service Life Memorial Account Deposit Factors
Insurance Company Fully Insured Benefit Plan (FIB)
Not Valid for Missouri or Florida. Effective 7/9/99
---------------------------------- ----------------------------------
18 MONTH 5 YEAR
(SAME AS CASH) ----------------------------------
---------------------------------- PRESENT DEPOSIT PRESENT DEPOSIT
AGE FACTOR AGE FACTOR
PRESENT AGE DEPOSIT FACTOR ----------------------------------
---------------------------------- 0-55 .01667 71 .0298
0-85 .05556 56 .0200 72 .0304
---------------------------------- 57 .0206 73 .0310
---------------------------------- 58 .0212 74 .0319
3 YEAR 59 .0218 75 .0331
---------------------------------- 60 .0223 76 .0338
PRESENT DEPOSIT PRESENT DEPOSIT 61 .0231 77 .0355
AGE FACTOR AGE FACTOR 62 .0235 78 .0372
---------------------------------- 63 .0238 79 .0384
0-60 .02778 78 .0588 64 .0245 80 .0392
61 .0333 79 .0599 65 .0251 81 .03932
62 .0359 80 .0610 66 .0263 82 .03945
63 .0385 81 .0621 67 .0270 83 .03957
64 .0407 82 .0632 68 .0276 84 .03966
65 .0417 83 .0643 69 .0284 85 .03970
66 .0437 84 .0648 70 .0293
67 .0449 85 .0650 ----------------------------------
68 .0459 86 .0676
69 .0472 87 .0687
70 .0487 88 .0698 ----------------------------------
71 .0495 89 .0710 10 YEAR
72 .0506 90 .0724 ----------------------------------
73 .0515 91 .0738 PRESENT DEPOSIT PRESENT DEPOSIT
74 .0531 92 .0752 AGE FACTOR AGE FACTOR
75 .0550 93 .0766 ----------------------------------
76 .0562 94 .0780 0-50 .00834 65 .0157
77 .0577 95 .0794 51-55 .0111 66 .0160
---------------------------------- 56 .0116 67 .0164
57 .0120 68 .0167
58 .0125 69 .0170
For examples, assume $5,000 Memorial Account and 59 .0129 70 .0174
5-year plan selected by a 65-year old individual. 60 .0134 71 .0176
61 .0139 72 .0179
Example 1: 62 .0143 73 .0182
More than $500 total initial application and delivery 63 .0148 74 .0185
deposits made. 64 .0152 75 .0188
----------------------------------
Total Memorial Account $5,000
Initial app. & delivery deposit -1,000
-------
Balance for 5-year plan 4,000
Deposit factor x.0251
-------
Monthly deposit amount $100.40
=======
Example 2:
Less than $500 total initial application and delivery
deposits made.
Total Memorial Account $5,000
Deposit factor x.0251
-------
$125.50
=======
Memorial Service Life Memorial Account Deposit Factors
Insurance Company Accelerated Benefit Plan (AB)
Not Valid for Missouri or Florida. Effective 7/9/99
---------------------------------- ----------------------------------
5 YEAR 10 YEAR
---------------------------------- ----------------------------------
PRESENT DEPOSIT PRESENT DEPOSIT PRESENT DEPOSIT PRESENT DEPOSIT
AGE FACTOR AGE FACTOR AGE FACTOR AGE FACTOR
---------------------------------- ----------------------------------
0-55 .0185 76 .0338 0-55 .0111 71 .0176
56 .0200 77 .035 56 .0116 72 .0179
57 .0206 78 .0372 57 .0120 73 .0182
58 .0212 79 .0384 58 .0125 74 .0185
59 .0218 80 .0392 59 .0129 75 .0188
60 .0223 81 .03932 60 .0134 76 .0193
61 .0231 82 .03945 61 .0139 77 .0198
62 .0235 83 .03957 62 .0143 78 .0204
63 .0238 84 .03966 63 .0148 79 .0209
64 .0245 85 .03970 64 .0152 80 .0214
65 .0251 86 .04098 65 .0157 81 .0219
66 .0263 87 .04230 66 .0160 82 .0224
67 .0270 88 .04366 67 .0164 83 .0229
68 .0276 89 .04510 68 .0167 84 .0235
69 .0284 90 .04666 69 .0170 85 .0240
70 .0293 91 .04783 70 .0174
71 .0298 92 .04934 ---------------------------------
72 .0304 93 .05156 For examples, assume $5,000
73 .0310 94 .05513 Memorial Account and 5-year
74 .0319 95 .06108 plan selected by a 65-year old
75 .0331 individual.
----------------------------------
Example 1:
More than $500 total initial Total Memorial Account $5,000
application and delivery Initial app. & delivery deposit -1,000
deposits made. -------
Balance for 5-year plan 4,000
Deposit factor x.0251
-------
Monthly deposit amount $100.40
=======
Example 2:
Less than $500 total initial
application and delivery Total Memorial Account $5,000
deposits made. Deposit factor x.0251
-------
Monthly deposit amount $125.50
=======
32
SCHEDULE E
----------
THIRD PARTY REINSURANCE LISTING
-------------------------------
10% of the Policies are reinsured to North America Life Insurance Company
of Texas.
33
SCHEDULE F
----------
PRIVACY NOTICE
OF
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
The Financial Services Modernization Act of 1999/Xxxxx-Xxxxx-Xxxxxx ("GLB")
requires financial institutions to formalize the manner in which they ensure
that consumer information is protected and remains private. In accordance with
GLB, Hannover Life Reassurance Company of America ("HLR America") has adopted
this privacy notice, which sets forth HLR America's policy for information
gathering and dissemination with respect to nonpublic personal information.
As the privacy notice confirms, the customer information received by HLR
America cannot be disclosed to any third party unaffiliated with HLR America,
except as permitted by law.
PRIVACY POLICY
Nonpublic Personal Information HLR America May Collect
------------------------------------------------------
Most of the personal information HLR America collects is obtained from
insurance companies or third party administrators. HLR America collects this
information in order to service and administer transactions and business
reinsured from insurance companies, and to carry out other business functions
that are permitted or required under state or Federal law. The type of
information HLR America collects depends on the type of product or service
being provided. The types of information that HLR America may collect include:
* Information we receive from insurance companies and third party
administrators that was provided as part of the application and
underwriting process, such as name, address, social security number,
birth date, assets, income and health history.
* Information we receive from other sources such as consumer reporting
agencies, banks, employers, or doctors.
* Information about an individual's transactions or experiences with
our us or our affiliates, such as insurance coverage, transaction
history, premium payments and claims history.
* Information about an individual's health condition that we obtain
from health care providers. Health information is collected as
deemed appropriate to determine eligibility for coverage, to process
claims, to prevent fraud, and as authorized by the individual or as
otherwise permitted or required by law.
34
Nonpublic Personal Information HLR America May Disclose And To Whom HLR America
-------------------------------------------------------------------------------
May Disclose Such Information
-----------------------------
HLR America may disclose all the personal information we collect. We may share
personal information in the following types of situations:
* We may disclose all the personal information we collect to service
providers, such as third party administrators, data processing
companies, reinsurers, retrocessionaires and other entities that assist
us in providing products and service to you or on your behalf.
* We may disclose all the personal information we collect to companies
with which we have marketing arrangements, such as companies that help
us market our products and services; and other entities with which
we have joint marketing arrangements to jointly endorse or offer
financial products or services.
* We may disclose personal information to our affiliates to assist us in
administering your business or to offer you other products or services
that we think may be of interest to you.
* We may disclose personal information we collect to unaffiliated third
parties for marketing or other purposes, unless you have opted out as
described below. Such unaffiliated third parties may include, among
others, insurance companies, reinsurers, actuaries, consultants,
administrators and others who may want to offer their products or
services to you.
* We may disclose health information to determine eligibility for
coverage, to process claims, to prevent fraud, and as authorized by
you, or as otherwise permitted or required by law.
* We may disclose all the information we collect as permitted or required
by law. For example, we may disclose information to law enforcement
agencies or state insurance authorities.
Change in Privacy Policy
------------------------
HLR America reserves the right to modify or supplement this Privacy Policy
at any time. If we make material changes, we will provide current customers
with a revised notice that describes our new practices and will give them a
reasonable opportunity to opt out of the disclosure of information under the
revised Privacy Policy.
Our Security Procedures
-----------------------
We maintain procedures and technology designed to prevent unauthorized access
to personal information. We maintain physical, electronic and procedural
protections in accordance with applicable standards to protect personal
information. We restrict access to personal information to
35
employees, reinsurers, retrocessionaires, third party administrators and
others for legitimate business purposes and who need to know such information
to assist in providing products and services to you.
Opting Out
----------
We are committed to protecting personal information, and to using or sharing
it in ways that will improve or expand upon the products and services we
provide to you. You are a valued customer and as such, you should know that
you may request through an opt-out response that we not share certain
information. In doing so, you may direct us at any time not to disclose
information to unaffiliated third parties and we will comply with such
direction; provided, however, that we may continue to share personal
information under a servicing or joint marketing arrangement with an outside
company or as otherwise permitted or required by law.
HLR America affiliated companies may share among themselves personal
information. If you prefer that we not share this information with them, you
may request through an opt-out response that we not share certain information.
As permitted by the Fair Credit Reporting Act, however, we may continue
to share with other affiliated companies information that relates to our
experiences or transactions with you.
If you wish to opt out of the sharing of information, you may complete the
attached opt-out response form and deliver it to us.
* * * * * * *
The practices and policies contained in this Privacy Notice, which contains
HLR America's Privacy Policy, replace all previous notices, policies or
statements with respect to the subject matter hereof.
00
XXX XXXXXXX PRIVACY POLICY
OPT-OUT FORM
Please complete the required information and follow the instructions below in
order to opt out of certain information sharing as described in the HLR America
Privacy Notice, which contains HLR America's Privacy Policy.
Customer Name:
---------------------------------------------------------
Street Address:
--------------------------------------------------------
City: State: Zip Code:
---------------------------- ----------- ----------
Telephone: Facsimile:
----------------------- ---------------------------
SHARING PERSONAL INFORMATION WITH UNAFFILIATED THIRD PARTIES: Do not
------
share personal information with unaffiliated third parties as described in
the HLR America Privacy Notice, which contains HLR America's Privacy Policy.
SHARING INFORMATION WITH HLR AMERICA AFFILIATES: Do not share
------
information with HLR America affiliates as described in the HLR America Privacy
Notice, which contains HLR America's Privacy Policy.
Instructions
If you wish to opt out of the sharing of information, please check the box(es)
above to indicate what type(s) of sharing you would like to limit. Also,
please print clearly the other identifying information requested above.
Please mail your completed form to us at the following address:
Hannover Life Reassurance Company of America
000 X. Xxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Attn: Compliance
37
