Exhibit 7(a)
SINGLE LIFE PERMANENT POOL
1. PLANS REINSURED
This Agreement covers business written by Provident Mutual Life Insurance
Company and by its subsidiary, Providentmutual Life and Annuity Company of
America on the following products:
Automatically and facultatively reinsure the following plans and riders:
Plans: Riders:
Options Premier Additional Insurance Benefit
Whole Life II Other Insured Term Rider
Portfolio II Waiver of Premium
Special Term Waiver of Monthly Deductions
ProvFlex UL Change of Insured
Face Amount Increases Guaranteed Purchase Option
Long Term Care Acceleration Benefit
Long Term Care Waiver
Accelerated Death Benefit
2. AUTOMATIC BINDING LIMITS
Automatic reinsurance coverage shall apply only to residents of the United
States, Canada and Puerto Rico.
A. LIFE: Pool binding limit is 16 times the Company's retention. Pool
Binding is in excess of the Company's retention.
The participant's share of the reinsurance pool is 25%
X. XXXXXX: Same as Life, not to exceed face amounts of $5,000,000.
C. ACCIDENTAL DEATH: Not applicable.
3. RETENTION LIMIT
Policy Size Retention
Up to $100,000 Provident will keep 100% of each policy up to
full retention
$100,001 and over Provident will keep 20% of each policy up to
full retention
4. MINIMUM CESSION
Amounts of Reinsurance less than $25,000 will not be ceded under this
agreement.
5. JUMBO LIMITS
A. LIFE: $50,000,000
B. WAIVER: Not to exceed face amounts of $5,000,000.
C. ACCIDENTAL DEATH: Not applicable
6. BASE POLICY RATES
The reinsurers and renewal rates are as follows. These rates are
percentages of the 1975-1980 Select and Ultimate Mortality tables. First
year rates are zero.
Company Preferred Nonsmoker Smoker
Cologne
ERC 34% 48% 99%
RGA
Transamerica
7. OTHER ALLOWANCES
Additional Insurance Benefit Same YRT rates as base policy
Other Insured Term Rider
Waiver of Premium 75% First year, 10% renewal years
Waiver of Monthly Deductions
Long Term Care Acceleration Benefit
Long Term Care Waiver
Flat Extras 6 Years or more:
75% First year, 10% renewal years
1-5 Years: 10% all years.
8. Effective Date - October 1, 2001
EXCEPTION: THE NEW RATES FOR THE BASE POLICIES WILL BE EFFECTIVE
AUGUST 1, 2001 FOR COLOGNE, ERC AND RGA WHO ARE IN THE CURRENT SINGLE LIFE POOL.
