Exhibit (g)(13)
[LOGO]
AMENDMENT NO. 9 to the Automatic YRT Reinsurance Agreement referred to as NO.
NA4428-90 effective April 1, 1990 made between IDS LIFE INSURANCE COMPANY
(hereinafter referred to as "the Company") and [NAME OF REINSURANCE COMPANY]
(hereinafter referred to as "the Reinsurer").
It is hereby declared and agreed that, effective June 1, 2002, Article 1,
paragraph 1, Basis of Reinsurance and paragraph 2, Automatic Coverage, shall be
revised as follows in order to revise the Reinsurer's share and the autobind
limits to accommodate the Single Premium Variable Life plan:
Article 1
Basis of Reinsurance
1. On and after the 1st day of April, 1990, whenever the Company issues an
amount of Life Insurance in excess of its retention on the plans of
insurance stated in Exhibit B, [percentage] of such excess for the Single
Premium Variable Life plan and [percentage] of such excess for all other
plans, up to the limits specified in Paragraph 2, below, shall be
reinsured automatically with the Reinsurer. At the option of the Company,
reinsurance may be ceded to the Reinsurer on an automatic basis as
provided in Paragraphs 2 and 3 of this Article or applications for
reinsurance may be made to the Reinsurer on a facultative basis as
provided in Paragraph 5 of this Article.
Automatic Coverage
2. Except as specified in Paragraph 4, whenever the Company retains its
maximum limit of retention, as indicated in Schedule I, the Company shall
cede and the Reinsurer shall automatically accept such Life reinsurance
as provided herein, on the same terms and for an amount not exceeding the
following for all ratings (standard rating only for Single Premium
Variable Life plan):
[ages] [dollar amount]
[ages] [dollar amount]
It is further agreed that Schedule I of the above Agreement and Exhibit B
(Revised August 1, 1998) shall be replaced by the attached Schedule I and
Exhibit B (both Revised June 1, 2002), in order to revise the Limits of
Retention and to extend reinsurance coverage to include the Single Premium
Variable Life plan, effective June 1, 2002.
It is understood that the Reinsurer shall only reinsure the mortality risk of
the Single Premium Variable Life plan. All asset-related risks and the 30-year
no lapse guarantee risk shall be fully retained by the Company.
Made in duplicate and executed by both parties.
2
Signed for and on behalf of IDS LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx By: [ILLEGIBLE]
----------------------- -----------------
Title: Reinsurance Officer Title: President
Date: 12/31/2002 Place: Mpls. MN
Signed for and on behalf of [NAME OF REINSURANCE COMPANY]
By: [signature] By: [signature]
Title: [title] [title]
Date: Dec. 24/02 Place: Dec. 27, 2002
SCHEDULE I
(Revised June 1, 2002)
LIMITS OF RETENTION
LIFE:
ISSUE AGES ALL RATINGS
[ages] [dollar amount]
[ages] [dollar amount]
W.P.:
Fully retained by the Company.
EXHIBIT B
(Revised June 1, 2002)
REINSURANCE PREMIUMS
1. PLANS & RIDERS
A) XX XXXXX
XX00
XX000
UL500
VUL
VUL350
EUL125
EUL100
Other Insured riders
B) FIXED PREMIUM PERMANENT PLANS
WL
Annual Reducing Term Rider
C) TERM INSURANCE
YRT
YRT-7
10 Year Renewable Term
ART
Mortgage Term
ART Rider
Note: IDS Life offers a Survivor Insurance Rider (SIR) for use with UL100
and UL500 in the estate planning market. UL100 and UL500 policies written
with an SIR will be excluded from the pool and reinsured only to [name of
reinsurance company].
2. STANDARD REINSURANCE RISK PREMIUM: The reinsurance premium rates to be
used for reinsurance ceded on the above plans and riders are the monthly
cost of insurance rates attached to this Exhibit B less the following
percentage reduction:
YEAR 1 YEARS 2-10 YEARS 11+
NON-SMOKER [percentage] [percentage] [percentage]
SMOKER [percentage] [percentage] [percentage]
EXHIBIT B
Page 2
(Revised June 1, 2002)
3. MULTIPLE TABLE SUBSTANDARD REINSURANCE RISK PREMIUMS: The reinsurance
premium for substandard risks rated on a multiple mortality table basis
shall be equal to a multiple of the standard rate proportionate to the
mortality classification. Thus, the premium for a Class D ([percentage])
risk shall be equal to twice the standard premium. The percentage premium
reduction specified in Section 2, above, shall apply to multiple table
substandard premiums.
4. FLAT EXTRA SUBSTANDARD REINSURANCE PREMIUMS:
a) Permanent Flat Extra Premiums are ones assessed for more than 5
years. The Reinsurer should receive its proportionate share of any
such premiums less the following percentage premium reductions:
First Year [percentage]
Renewal [percentage]
b) Temporary Flat Extra Premiums are ones assessed for 5 years or
less. The Reinsurer should receive its proportionate share of any
such premiums less the following percentage premium reductions:
First Year [percentage]
Renewal [percentage]
5. RECAPTURE: Reinsurance ceded on these rates shall not be eligible for
recapture before the tenth policy anniversary.
6. AGE BASIS: Nearest.
7. DEFICIENCY RESERVES: If deficiency reserves are required to be held by
the Company on any policy reinsured under this Agreement, the entire
amount of any such reserve will be established and held by the Company.
8. RATE GUARANTEE: Premiums for reinsurance shall be computed on the basis
of the amount at risk times the annual rates attached to this Exhibit B.
The Reinsurer reserves the right to increase the premiums for
reinsurance, but not above the statutory net premium, in the second
policy year and later.
9. COVERAGE: Policies issued on lives resident in the U.S.
EXHIBIT B
Page 3
(Revised June 1, 2002)
REINSURANCE PREMIUMS
1. PLANS: Life Protection Plus
Other Insured Rider
Single Premium Variable Life
2. STANDARD REINSURANCE RISK PREMIUM: The reinsurance premium rates to be
used for reinsurance ceded on the above plans and rider are the cost of
insurance rates attached to this Exhibit B less the following percentage
reductions:
YEAR 1 YEARS 2-10 YEARS 11+
------------ ------------ ------------
Non-smoker [percentage] [percentage] [percentage]
Smoker [percentage] [percentage] [percentage]
3. MULTIPLE TABLE SUBSTANDARD REINSURANCE RISK PREMIUMS: The reinsurance
premium for substandard risks rated on a multiple mortality table basis
shall be equal to a multiple of the standard rate proportionate to the
mortality classification. Thus, the premium for a Class D ([percentage])
risk shall be equal to twice the standard premium. The percentage premium
reduction specified in Section 2, above, shall apply to multiple table
substandard premiums.
4. FLAT EXTRA SUBSTANDARD REINSURANCE PREMIUMS:
a) Permanent Flat Extra Premiums are ones assessed for more than
5 years. The Reinsurer should receive its proportionate share
of any such premiums less the following percentage premium
reductions:
First Year [percentage]
Renewal [percentage]
b) Temporary Flat Extra Premiums are ones assessed for 5 years
or less. The Reinsurer should receive its proportionate share
of any such premiums less the following percentage premium
reductions:
First Year [percentage]
Renewal [percentage]
EXHIBIT B
Page 4
(Revised June 1, 2002)
5. REINSURANCE PREMIUMS FOR POLICIES CONVERTED TO THE LIFE PROTECTION PLUS
PLAN: Any reinsurance in force with the Reinsurer on policies converted
to or reissued on the above plan shall be continued with the Reinsurer.
The reinsured risk amount shall be determined as described in Article V
of this Agreement following the conversion or reissue. The applicable
reinsurance premiums will be determined as described in this Exhibit B,
with age and duration measured from the date of issue of the original
policy.
6. RECAPTURE: Reinsurance ceded on these rates shall not be eligible for
recapture before the tenth policy anniversary.
7. AGE BASIS: Last.
8. DEFICIENCY RESERVES: If deficiency reserves are required to be held by
the Company on any policy reinsured under this Agreement, the entire
amount of any such reserve will be established and held by the Company.
9. RATE GUARANTEE: Premiums for reinsurance shall be computed on the basis
of the amount at risk times the annual rates attached to this Exhibit B.
The Reinsurer reserves the right to increase the premiums for
reinsurance, but not above the statutory net premium, in the second
policy year and later.
10. COVERAGE: Policies issued on lives resident in the U.S.
EXHIBIT B
Page 5
(Revised June 1, 2002)
REINSURANCE PREMIUMS
1. PLANS: 1 Year Term (1YT) 10 Year Term (10 YT)
2. STANDARD REINSURANCE RISK PREMIUM: The reinsurance premium rates to be
used for reinsurance ceded on the above plan and rider are the cost of
insurance rates attached to this Exhibit B less the following percentage
reductions:
1 YEAR TERM
YEAR 1 YEARS 2-10 YEARS 11 +
WELLNESS [percentage] [percentage] [percentage]
NON-SMOKER [percentage] [percentage] [percentage]
SMOKER [percentage] [percentage] [percentage]
10 YEAR TERM
YEAR 1 YEARS 2-10 YEARS 11 +
WELLNESS [percentage] [percentage] [percentage]
NON-SMOKER [percentage] [percentage] [percentage]
SMOKER [percentage] [percentage] [percentage]
For the 1 Year Term and 10 Year Term plans, reentry is permitted at the
10th policy anniversary. Reinsurance on the original policy will be
continued after reentry. Reinsurance premiums on reentries shall be as
described in the Agreement which covers the new policy; unless that
Agreement specifies otherwise, the policy duration and attained age of
the insured, for purposes of calculating such premiums, shall be
determined as though the reentries were issued on the same date and at
the same issue age as the original policy. If no such Agreement is in
effect, reinsurance shall continue hereunder.
3. MULTIPLE TABLE SUBSTANDARD REINSURANCE RISK PREMIUMS: The reinsurance
premium for substandard risks rated on a multiple mortality table basis
shall be equal to a multiple of the standard rate proportionate to the
mortality classification. Thus, the premium for a Class D [percentage]
risk shall be equal to twice the standard premium. The percentage premium
reduction specified in Section 2, above, shall apply to multiple table
substandard premiums.
Exhibit B
Page 6
(Revised June 1, 2002)
4. FLAT EXTRA SUBSTANDARD REINSURANCE PREMIUMS:
a) Permanent Flat Extra Premiums are ones assessed for more than
5 years. The Reinsurer should receive its proportionate share
of any such premiums less the following percentage premium
reductions:
First Year [percentage]
Renewal [percentage]
b) Temporary Flat Extra Premiums are ones assessed for 5 years
or less. The Reinsurer should receive its proportionate share
of any such premiums less the following percentage premium
reductions:
First Year [percentage]
Renewal [percentage]
5. REINSURANCE PREMIUMS FOR POLICIES CONVERTED FROM THE ABOVE PLANS: Any
reinsurance in force with the Reinsurer on policies converted from the
above plans shall be continued with the Reinsurer. The reinsured risk
amount shall be determined as described in Article V following the
conversion. The applicable reinsurance premiums will be determined as
described in this Exhibit B, with age and duration measured from the date
of issue of the original policy.
Fully underwritten exchanges to the above plans shall be treated as new
issues for reinsurance purposes.
6. RECAPTURE: Reinsurance ceded on these rates shall not be eligible for
recapture before the tenth policy anniversary.
7. AGE BASIS: Last.
8. DEFICIENCY RESERVES: If deficiency reserves are required to be held by
the Company on any policy reinsured under this Agreement, the entire
amount of any such reserve will be established and held by the Company.
9. RATE GUARANTEE: Premiums for reinsurance shall be computed on the basis
of the amount at risk times the annual rates attached to this Exhibit B.
The Reinsurer reserves the right to increase the premiums for
reinsurance, but not above the statutory net premium, in the second
policy year and later.
10. COVERAGE: Policies issued on lives resident in the U. S.
MALE RATE TABLE
Guaranteed Maximum Monthly Cost of Insurance Rates per $1,000
for Insureds with a Standard Rate Classification
Standard Standard Standard
Attained Non- Attained Non- Attained Non-
Age Standard Smoker Age Standard Smoker Age Standard Smoker
--- -------- ------ --- -------- ------ --- -------- ------
0 $
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
For insureds with other than a standard rating classification, the guaranteed
monthly cost of insurance rates are calculated by multiplying the above monthly
rates by the Special Class Rating Factor shown under Policy Data.
FEMALE RATE TABLE
Guaranteed Maximum Monthly Cost of Insurance Rates per $1,000
for Insureds with a Standard Rate Classification
Standard Standard Standard
Attained Non- Attained Non- Attained Non-
Age Standard Smoker Age Standard Smoker Age Standard Smoker
--- -------- ------ --- -------- ------ --- -------- ------
0 $
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
For insureds with other than a standard rating classification, the guaranteed
monthly cost of insurance rates are calculated by multiplying the above monthly
rates by the Special Class Rating Factor shown under Policy Data.
