Exhibit 7(g)
AMENDMENT No. 4
to the
REINSURANCE AGREEMENT NO. 2727
EFFECTIVE JANUARY 1, 1999
between
PROVIDENT MUTUAL LIFE INSURANCE COMPANY
of
Berwyn, Pennsylvania
and
ERC LIFE REINSURANCE CORPORATION
of
Jefferson City, Missouri
The attached Exhibit A - Amended, reflecting revisions to the quota-share
reinsured, retention and binding limits, hereby replaces Exhibits A.
All terms, provisions and conditions of this Agreement will continue unchanged
except as specifically revised in this Amendment.
This Amendment is signed in duplicate at the dates and places indicated with an
effective date of October 1, 2001.
PROVIDENT MUTUAL LIFE ERC LIFE REINSURANCE
INSURANCE COMPANY CORPORATION
Approved By: /s/ Xxxxx X. Xxxxxx Approved By: /s/ Xxxxxxxxx X Xxxxxxxx
---------------------- -------------------------
Title: Vice President & Actuary Title: AVP
---------------------------- -------------------------------
Date: 12-13-2001 Date: 12/10/01
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1 12/10/01
EXHIBIT A - AMENDED
(EFFECTIVE OCTOBER 1, 2001 - AMENDMENT NO. 4)
REINSURANCE COVERAGE
I. REINSURANCE COVERAGE
This Agreement will cover a 25% first dollar quota-share of
Life Benefits;
Disability Waiver Benefits issued with Life Benefits;
Other Supplementary Benefits or Riders issued with Life Benefits and
specifically listed below;
on the following policy forms:
PLANS
Options Premier
Whole Life 2
Portfolio 2
Special Term
Provflex Universal Life
Face Amount Increases
RIDERS
Additional Insurance Benefit
Other Insured Term
Waiver of Premium
Waiver of Monthly Deductions
Change of Insured
Guaranteed Purchase Option
Long Term Care Acceleration Benefit
Long Term Care Waiver
Accelerated Death Benefit
Reinsurance coverage will provide neither loan nor cash surrender values.
2 12/10/01
EXHIBIT A - AMENDED - CONTINUED
(EFFECTIVE OCTOBER 1, 2001 - AMENDMENT NO. 4)
II. RETENTION LIMITS OF CEDING COMPANY
A. LIFE
For policies with face amounts up to $100,000 you will retain 100% of the
risk up to the retention limits. For policies with face amounts $100,001
and over you will retain 20% of the risk up to the retention limits shown
below.
Special Classes A-G Special Classes H-K
Age at Issue Standard Flat Extras $0-10.00 Flat Extras $10.01+
------------ -------- -------------------- -------------------
0-31 days $25,000 None None
32 days-2 years 750,000 $500,000 $375,000
3-65 1,250,000 875,000 625,000
66-70 1,000,000 750,000 500,000
71-75 500,000 375,000 250,000
76-80 250,000 None None
81-85 125,000 None None
86+ None None None
The above limits may be exceeded by as much as $25,000 in order to avoid
reinsurance.
B. DISABILITY WAIVER
Same as Life; not to exceed face amounts of $5,000,000
C. ACCIDENTAL DEATH BENEFITS
Not reinsured under this Agreement
III. AUTOMATIC ACCEPTANCE LIMITS
A. LIFE
We will accept automatically the lesser of 4 times your retention or
$5,000,000 per insured life. However, the maximum amount of
reinsurance per life that we will accept under all automatic
reinsurance agreements written between our two companies will not
exceed the largest individual acceptance limit shown in the
agreements. For the purposes of this Agreement, the maximum binding in
all reinsurers is $20,000,000.
The binding limits are exclusive of your retention.
3 12/10/01
EXHIBIT A - AMENDED - CONTINUED
(EFFECTIVE OCTOBER 1, 2001 - AMENDMENT NO. 4)
B. DISABILITY WAIVER
We will participate in Disability Waiver Benefits to a maximum
$5,000,000 of Benefit face amount per insured life.
IV. EXCLUSIONS TO AUTOMATIC REINSURANCE COVERAGE
Automatic reinsurance coverage will not be available in the following
situations:
1. The policy has been submitted on a facultative, facultative
obligatory or initial inquiry basis to us or to any other reinsurer;
2. The risk is categorized as a "Jumbo Risk", where your underwriting
papers indicate that the total life insurance in force and applied for
on the insured's life exceeds $50,000,000.
3. The policy is part of any special program that you offer, including:
a) experimental or limited retention programs, including but not
limited to cancer, diabetes, aviation or coronary risks;
b) external replacement and/or conversion programs other than
contractual conversions or exchanges of the original policy.
4. You have retained an amount less than your usual retention limits for
the age and table rating of the insured.
5. The policy is a result of a conversion from group insurance, unless
we agree otherwise.
4 12/10/01
