YEARLY RENEWABLE TERM REINSURANCE AGREEMENT, Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
(Worcester, Massachusetts)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hartford, Connecticut)
INDEX
ARTICLE PAGE
------- ----
Accounting Statements 11 6
Amounts at Risk 7 4
Application of Agreement 1 1
Arbitration 16 10
Automatic Reinsurance 2 1
Cancellations 10 5
Changes 10 5
Claim Payments 12 7
Claim Procedures 12 7
Conditions of Reinsurance 6 3
Contested Claims 12 7
Data Requirements 11 6
Duration of Agreement 17 11
Exchanges 10 5
Experience Refunds 14 9
Extra-Contractual Damages 12 8
Facultative Reinsurance 3 2
Increasing Insurance Amounts 2 2
Insolvency 12 8
Jumbo Risk Defined 2 2
Liability of Connecticut General 5 3
Misstatements of Age or Sex 12 8
New Limits of Retention 2 2
Notification 4 3
Oversights 16 10
Premium Payment Basis 8 4
Premium Rates 8 4
Premium Tax Reimbursements 9 5
Procedure for Facultative Reinsurance 3 3
Recaptures 13 9
Reductions 10 5
Reinstatements 10 5
Right to Inspect 15 9
Split Option 2 2
Yearly Renewable Term 7 4
SCHEDULES
A. Retention of State Mutual
B. Automatic Reinsurance in Connecticut General
C. Reinsurance Application
D. Bulk Reporting Forms
E. Reinsurance Premiums
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
(Hereinafter called State Mutual)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hereinafter called Connecticut General)
It is agreed by the two companies as follows:
ARTICLE 1
APPLICATION OF AGREEMENT
Reinsurance under this agreement will apply to life reinsurance issued by
State Mutual on its Joint Last Survivor Plan known as Inheiritage (Form No.
1020-89). Such reinsurance will include those policies issued when one
participant of the joint policy is uninsurable, provided that the
underwriting assessment of the insurable participant is no higher than Table
6 (250%); and will also include those policies issued in conversion or
exchange of existing individual life policies whether originally reinsured in
Connecticut General or not.
ARTICLE 2
AUTOMATIC REINSURANCE
Whenever State Mutual requires reinsurance for the excess over its retention
of life insurance issued in accordance with State Mutual's usual underwriting
standards for individually selected risks and such insurance is issued to a
United States or Canadian resident whose surname begins with any of the
letters A through Z inclusive, who is not classified as a jumbo risk as
hereinafter defined, and on who State Mutual is retaining its maximum limit
of retention as shown in Schedule A, attached hereto, State Mutual will cede
and Connecticut General will accept 33-1/3% of such reinsurance under this
agreement up to a maximum amount on one life as shown in Schedule B, attached
hereto, provided that such reinsurance is not being submitted to any
reinsurer on a facultative basis.
State Mutual will not change its existing underwriting and issuance practices
in effect on or after May 1, 1989 which relate to the policies reinsured
hereunder unless State Mutual notifies Connecticut General in writing.
1
JUMBO RISK DEFINED
For the purpose of this agreement, a jumbo risk is defined as one where the
papers of State Mutual indicate that the proposed insured's total life
insurance in force and applied for in all companies exceeds the applicable
amount shown in the following schedule:
INSURANCE AGE TOTAL LINE
------------- ----------
20 - 70 $ 20,000,000
SPLIT OPTION
The Split Option Rider attached to Joint Last Survivor policies reinsured
hereunder will be reinsured under this provision, and any additional premium
which State Mutual may collect for such rider will be paid to Connecticut
General on the reinsured portion.
To exercise the Split Option Rider, each insured must be rated no higher than
Table 4 (200%), and the face amount of each new individual policy must be no
more than 50% of the face amount of the joint policy. Subject to the
foregoing and any other applicable provisions, each new policy will be
reinsured under the appropriate individual life reinsurance agreement in
effect between the two companies which covers the new plan of insurance.
NEW LIMITS OR RETENTION
State Mutual's usual limits of retention are shown in Schedule A, attached
hereto. State Mutual will notify Connecticut General of all subsequent
changes in these limits.
ARTICLE 3
FACULTATAIVE REINSURANCE
Whenever State Mutual desires reinsurance of individual life insurance, it
may apply to Connecticut General for reinsurance under the provisions of this
agreement.
PROCEDURE FOR FACULTATIVE REINSURANCE
Whenever State Mutual applies to Connecticut General for facultative
reinsurance, it will forward Connecticut General an application form in
substantial accord with Schedule C, attached hereto, together with copies of
the original application, medical examiners' reports, inspection reports, and
all other commonly accepted underwriting evidence bearing on the insurability
of the risk. Connecticut General will examine the papers immediately upon
receipt of such application and, as soon as possible, notify State Mutual of
its decision.
2
ARTICLE 4
NOTIFICATION
State Mutual will notify Connecticut General when reinsurance is not required
on a risk for which reinsurance has been applied on a facultative basis.
ARTICLE 5
LIABILITY OF CONNECTICUT GENERAL
The liability of Connecticut General, on any reinsurance under this
agreement, subject to the prior approval of Connecticut General in the case
of facultative reinsurance, will commence simultaneously with that of State
Mutual under the respective policy of State Mutual. Subject to the provisions
of Articles 10, 13 and 17 and the payment of reinsurance premiums as provided
under Articles 8 and 11 of this agreement, each reinsurance will be continued
in force as long as State Mutual is liable under its respective policy and
will terminate when the liability of State Mutual terminates.
ARTICLE 6
CONDITIONS OF REINSURANCE
Reinsurance under this agreement will be subject to all the applicable
provisions contained in the respective policies of State Mutual.
Connecticut General will not be called upon to participate in policy loans on
policies reinsured hereunder.
State Mutual will furnish Connecticut General with specimen copies of all of
its current application, policy and rider forms, and tables of rates and
values which may be required for the proper administration of the reinsurance
under this agreement and will advise Connecticut General of all subsequent
modifications thereof and new forms under which reinsurance may be effected.
In addition, State Mutual will promptly notify Connecticut General of any
non-contractual modifications of its policy forms and any systematic revision
of available benefits.
ARTICLE 7
YEARLY RENEWABLE TERM
Life reinsurance under this agreement will be on the Yearly Renewable Term
plan for the amounts at risk on the portion of the original policy reinsured
in Connecticut General.
3
AMOUNTS AT RISK
The percentage relationship of reinsurance to total original issue will be
determined at issue and will then remain constant for the given death
benefit. The reinsurance amount at risk will be the amount equal to the death
benefit at issue less the cash value less the amount State Mutual is
retaining on the policy.
Increases in the death benefit that are underwritten in accordance with State
Mutual's usual underwriting standards for individually selected risks for new
issues will be considered as new insurance for the purpose of determining the
reinsurance amount at risk.
ARTICLE 8
PREMIUM RATES
Premiums for reinsurance under this agreement will be computed at the rates
shown in Schedule E, attached hereto. The renewal rates which are guaranteed
for life reinsurance, however, are those shown in Schedule E, except that
where such rates are less than the 1980 CSO net premiums at 5.5% for the
applicable rating, it is such net premium rates which are guaranteed.
PREMIUM PAYMENT BASIS
Reinsurance premiums will be payable on an annual basis and in accordance
with the provisions of Article 11.
Whenever reinsurance hereunder is reduced or terminated, Connecticut General
will refund the unearned reinsurance premium with the exception of the annual
fee, which will not be subject to refund for any reason.
Whenever reinsurance hereunder is reinstated, State Mutual will pay
Connecticut General the proportionate part of the reinsurance premium, based
on the premiums payable for the year of reinstatement, for the period from
the date of reinstatement to the policy anniversary date next following.
Thereafter, reinsurance premiums will be payable in accordance with Articles
8 and 11.
ARTICLE 9
PREMIUM TAX REIMBURSEMENTS
Connecticut General will reimburse State Mutual for Connecticut General's
share of premium taxes paid by State Mutual to those states and provinces
which do not allow reinsurance premiums paid by State Mutual to Connecticut
General to be deducted from State Mutual's taxable premiums. Such premium tax
reimbursement will be based on net premiums paid to Connecticut General.
4
ARTICLE 10
CHANGES
Whenever a change is made in the plan of a policy or portion of a policy
reinsured hereunder, reinsurance hereunder on that policy or policy portion
will terminate; however, the new policy will be reinsured in Connecticut
General under the provisions of a reinsurance agreement between the two
companies which provides reinsurance on that particular plan. Whenever a
change is made in the underwriting classification of a policy reinsured
hereunder, a corresponding change will be made in the reinsurance subject to
the prior approval of Connecticut General.
EXCHANGES
State Mutual will inform Connecticut General of company exchange programs
with respect to currently reinsured in force policies so that good faith
negotiations can be undertaken to continue coverage.
REDUCTIONS, CANCELLATIONS
Whenever a policy upon which reinsurance is based is reduced or terminated or
whenever all or part of the insurance which was in force at the date
reinsurance was effected and not covered by previous reinsurance is reduced
or terminated, the reinsurance will be reduced by a like amount as of the
date of such reduction or termination. If reinsurance has been effected in
more than one company, the reduction in the reinsurance in Connecticut
General will be that proportion of the total amount of the reduction which
the reinsurance in Connecticut General is of the total amount reinsured.
REINSTATEMENTS
Whenever a policy reinsured hereunder lapses, or is continued on the paid-up
or extended term insurance basis, and is later approved for reinstatement by
State Mutual in accordance with its usual underwriting standards, reinsurance
of the excess over State Mutual's original retention resulting from such
reinstatement will be automatically reinstated by Connecticut General for an
amount not exceeding that part of the policy originally reinsured in
Connecticut General. However, if such reinsurance was effected on a
facultative basis State Mutual will obtain Connecticut General's prior
approval before reinstating the policy.
State Mutual will promptly notify Connecticut General of such reinstatement,
and the reinsurance so reinstated will become effective as of the date of
State Mutual's underwriting approval of reinstatement.
5
ARTICLE 11
ACCOUNTING STATEMENTS
On or before the 30th day of each month State Mutual will forward Connecticut
General an itemized statement in substantial accord with Schedule D - Section
I, attached hereto, in duplicate, covering the following for the month
immediately preceding:
a. First year premiums due on new reinsurance.
b. Renewal premiums due on existing reinsurance with renewal anniversaries
during the previous month.
c. Premium adjustments outstanding on changes in reinsurance and previous
accounting statement entries.
State Mutual will include with its statement, a remittance for the balance
due Connecticut General. If the balance is due State Mutual, then Connecticut
General will promptly remit the amount of such balance to State Mutual.
The payment of reinsurance premiums in accordance with the terms of the
preceding paragraph will be a condition precedent to the liability of
Connecticut General under reinsurance covered by this agreement. If
reinsurance premiums due Connecticut General are not paid by State Mutual
within sixty days of the due date described above, Connecticut General will
have the right to terminate the reinsurance under the cessions for which
premiums are in default. If Connecticut General elects to exercise its right
of termination, it will give State Mutual thirty days' written notice of
termination. If all reinsurance premiums in default, including any which may
become in default during the thirty-day period, are not paid before the
expiration of such period, Connecticut General will thereupon be relieved of
future liability under all reinsurance for which premiums remain unpaid.
Prior to January 15 of each year, State Mutual will forward Connecticut
General any information necessary to complete the Annual Statement. Such
information will be supplied in substantial accord with Schedule D - Section
II, attached hereto.
DATA REQUIREMENTS
State Mutual will provide Connecticut General with details pertaining to the
policies reinsured hereunder when and as requested by Connecticut General.
6
ARTICLE 12
CLAIM PROCEDURES
State Mutual will notify Connecticut General of each claim promptly after
first receipt of such information.
Connecticut General will abide the issue as settled between State Mutual and
its claimant, whether with or without contest, and the claim proofs accepted
by State Mutual will also be accepted by Connecticut General, provided,
however, that in any case where the amount of life or other reinsurance
carried by State Mutual in Connecticut General and in force at the time of
claim is greater than four times the amount of such coverage retained by
State Mutual, State Mutual will obtain Connecticut General's recommendation
before conceding any liability to or making any settlement with its claimant.
State Mutual will furnish Connecticut General with copies of the claim proofs
and will notify Connecticut General of the payment of the claim, and
Connecticut General will then pay its portion of the claim to State Mutual.
CLAIM PAYMENTS
In settlement of any death claim, Connecticut General will pay one sum
regardless of the method of settlement under the original policy. In the case
of universal life policies, Connecticut General will reimburse for the amount
of reinsurance purchased.
CONTESTED CLAIMS
State Mutual will notify Connecticut General of its intention to contest,
compromise or litigate a claim involving reinsurance, and Connecticut General
will pay its share of the payment and specific expenses, including legal or
arbitration costs, special investigations or similar expenses, but excluding
salaries of employees, therein involved, unless it declines to be a party to
the contest, compromise or litigation, in which case it will pay State Mutual
the full amount of the reinsurance. In the event that Connecticut General
agrees to be a party to the contest, it will also pay its pro rata portion of
any penalties, attorneys fees, and interest imposed automatically by statute
against State Mutual and arising solely out of a judgement being rendered
against State Mutual as a result of the contested claim.
In the event of a reduced settlement of a claim, the amount payable by
Connecticut General will be Connecticut General's share of the reinsurance
amount payable for the benefit less that proportion of the reduction in
settlement which the amount of benefit reinsured at the date of claim bears
to the total amount at risk for the benefit under the policy at the time of
the claim.
7
EXTRA-CONTRACTUAL DAMAGES
Connecticut General assumes no liability under this agreement or otherwise
for any extra-contractual damages assessed against State Mutual, its agents
or representatives, on account of any policy reinsured hereunder, including,
but not limited to, consequential, compensatory, exemplary or punitive
damages.
MISSTATEMENTS OF AGE OR SEX
Whenever the amount of insurance on a policy reinsured hereunder is increased
or reduced because of a misstatement of age or sex established after the
death of the insured, the two companies will share in such increase or
reduction in proportion to the respective net liabilities carried by the two
companies on the policy immediately prior to the adjustment.
INSOLVENCY
All reinsurance under this agreement will be payable by Connecticut General
directly to State Mutual, its liquidator, receiver or statutory successor on
the basis of the liability of State Mutual under the policy or policies
reinsured, without diminution because of the insolvency of State Mutual. It
is understood, however, that in the event of such insolvency, the liquidator
or receiver or statutory successor of State Mutual will give written notice
of the pendency of a claim against State Mutual on the policy reinsured
within a reasonable time after such claim is filed in the insolvency
proceedings, and that during the pendency of such claim Connecticut General
may investigate such claim and interpose, at its own expense, in the
proceedings where such claim is to be adjudicated, any defense or defenses
which it may deem available to State Mutual or its liquidator or receiver or
statutory successor.
It is further understood that the expense thus incurred by Connecticut
General will be chargeable, subject to court approval, against State Mutual
as part of the expense of liquidation to the extent of a proportionate share
of the benefit which may accrue to State Mutual solely as a result of the
defense undertaken by Connecticut General. Where two or more reinsurers are
involved in the same claim and a majority in interest elect to interpose
defense to such claim, the expense will be apportioned in accordance with the
terms of the reinsurance agreement as though such expense had been incurred
by State Mutual.
8
ARTICLE 13
RECAPTURES
Whenever State Mutual increases its maximum limit of retention for new
business, it will have the option of recapturing a corresponding amount of
insurance on each life reinsured under this agreement, provided that
reinsurance will not be so recaptured before the end of the respective
twentieth policy year of any give cession. Reinsurance will be eligible for
recapture on each life on which State Mutual has maintained its maximum limit
of retention, as shown in Schedule A, for the age, plan and mortality
classification of the risk at time of issue. Special limits for specific
underwriting hazards or impairments will not be considered to be maximum
limits of retention.
State Mutual will, within ninety days after the effective date for its
increase in retention of new issues, notify Connecticut General of its
intention to exercise its option to recapture and the effective date such
recapture is to commence. Reinsurance in force will then be reduced, as
herein provided, on the respective anniversary date next following, or the
twentieth anniversary date, where applicable. If recapture as provided above
is elected by State Mutual, then all reinsurance eligible for such recapture
will be similarly recaptured. Recapture will commence with the effective date
established by State Mutual and will continue uninterrupted by State Mutual
until all eligible policies have been recaptured.
Notwithstanding the above, whenever reinsurance is issued hereunder on the
conversion of a policy originally reinsured under this or any other agreement
between the two companies, the recapture provisions applicable to the
original reinsurance will continue to apply to the reinsurance of the new
policy.
The reduction in each risk will be of such an amount as will increase State
Mutual's share in the risk to its new maximum limit of retention for the age,
plan and mortality classification at time of issue. If reinsurance is in
force with other companies on a given risk, the reduction in the reinsurance
in Connecticut General will be that proportion of the total reduction
indicated which the reinsurance in Connecticut General is of the total amount
reinsured.
ARTICLE 14
EXPERIENCE REFUNDS
Life reinsurance accepted under this agreement will not be eligible for
experience refunds.
9
ARTICLE 15
RIGHT TO INSPECT
Connecticut General may, at all reasonable times, inspect in the offices of
State Mutual the original papers, records, books, files and other documents
referring to the business covered by this agreement.
ARTICLE 16
OVERSIGHTS
If nonpayment of premiums within the time specified or failure to comply with
any of the other terms of this agreement is shown to be unintentional and the
result of oversight or misunderstanding on the part of either State Mutual or
Connecticut General, this agreement will not be considered abrogated thereby,
but both State Mutual and Connecticut General will be restored to the
position they would have occupied had no such oversight or misunderstanding
occurred.
ARBITRATION
Should a disagreement arise between the two companies regarding the rights or
liabilities of either company under any transaction under this agreement, the
issue will be referred to arbitrators, one to be chosen by each company from
among officers of other life insurance companies, who are familiar with
reinsurance transactions, and a third to be chosen by the said two
arbitrators before entering into arbitration. An arbitrator may not be a
present or former officer, attorney, or consultant of State Mutual or
Connecticut General or either's affiliates. If the arbitrators appointed by
the two parties cannot agree on a third person, then either party may apply
to the court, pursuant to Section 52-411 of the General Statutes of the State
of Connecticut, for appointment of a third arbitrator. The arbitrators will
regard this document as an honorable agreement and not merely as a legal
obligation, as they will consider practical business and equity principles.
The arbitrators' decision will be final and binding upon both companies.
The place of meeting of the arbitrators will be decided by a majority vote of
the members thereof. All expenses and fees of the arbitrators will be borne
equally by State Mutual and Connecticut General (unless the arbitrators
decide otherwise).
10
ARTICLE 17
DURATION OF AGREEMENT
This agreement will take effect as of May 1, 1989. It is not limited in
duration, but may be amended at any time by mutual consent of the two
companies and may be terminated as to further new reinsurance at any time by
either company upon three months' notice by registered letter. Such
termination as to new reinsurance will not affect existing reinsurance which
will remain in force until the termination or expiry of each individual
reinsurance in accordance with the terms and conditions of this agreement
provided, however, that Connecticut General will not be liable under this
agreement for any claims or premium refunds which are not reported to
Connecticut General within 180 days following the termination or expiry of
all reinsurance reinsured hereunder.
In witness whereof, this agreement is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date March 1, 1991
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/ Xxxxx X. Xxxxx
--------------------------------------------
Date January 11, 1991
---------------------------------------
11
SCHEDULE A
Maximum Limits of Retention of State Mutual
LIFE INSURANCE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES SPECIAL CLASSES
A, B, C, D AND E, F. H AND J, L, P AND
ISSUE FLAT EXTRAS OF FLAT EXTRAS OF FLAT EXTRAS OF
AGE $10 OR LESS (a) $10.01 - $20 (b) $20.01 AND OVER
--- --------------- ---------------- ---------------
-0- $ 400,000 $ 200,000 $ 100,000
1-17 800,000 600,000 200,000
18-60 1,000,000 700,000 400,000
61-70 700,000 500,000 200,000
71-75 300,000 200,000 100,000
76-80 200,000 100,000 50,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and riders not available above Class H.
Notes: (1) The above maximum limits are also the maximums on any one life
for all plans and riders combined.
(2) There are conditions where the retention may be limited,
such as in aviation, Armed Forces Personnel, certain
avocations and medical classifications.
(3) The America Group will retain those additional amounts which
will avoid reinsurance cessions of less than $25,000 per
reinsurer.
(4) In the case of Joint Last Survivor policies, retention will
be based on the insured rated Standard or closest thereto.
CORONARY HISTORY
(Combined Table and Flat Extra Rating)
AGES RETENTION
---- ---------
0-60 $ 300,000
61-70 150,000
71-80 50,000
1
CIVILIAN AVIATION
PASSENGERS UNDERWRITING ACTION RETENTION
---------- ------------------- ---------
Company Owned Planes
To 200 hours annually Standard $ 1,000,000
Over 200 hours annually Individual Consideration* 500,000
Charter Flying
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* 300,000
Private Business or Pleasure
To 100 hours annually Standard $ 500,000
Over 100 hours annually Individual Consideration* 300,000
Pilots and Crew Members $ 300,000
*Requires complete details of type of planes and equipment, flying terrain and
qualification of pilots.
ARMED FORCES
1. Active duly personnel, Reserves alerted, National Guard alerted, ROTC final
college year, West Point Cadets, Annapolis Midshipmen, Air Force and Coast
Guard Academy Cadets.
RETENTION
---------
AGES OFFICERS ENLISTED PERSONNEL
---- -------- ------------------
24 and under $ 100,000 $ 50,000
25 and Over 150,000 100,000
(Submarine Service,
Hazardous Special Services,
Paratroopers and Airborne
Infantry are not eligible.)
2. Doctors, Dentists, Allied Specialists $ 200,000 ----
3. Civilians participants in Reserve
Programs entering an active duty for
up to six months only, with remaining
military service obligation to be
completed in Ready Reserve. All ages. $ 150,000 $ 100,000
*Enlisted Personnel (Grades E-1 through E-3 are not eligible).
2
SCHEDULE B
Maximum Limits of Automatic Reinsurance in Connecticut General
LIFE INSURANCE
--------------
AGES STANDARD THROUGH 500%
---- ---------------------
20-70 $ 2,000,000
REINSURANCE APPLICATION
Omitted 1 Page
Exhibit A
YRT MONTHLY REPORT
To: CIGNA RE Date: ________________________
____ CG Business
____ XXXX Business Prepared By:_______________________
From: _________________________ Telephone: ________________________
Account:_______________________ Reinsurance Report Covering
Month of:_____________________
SECTION I : ACCOUNTING STATEMENT
LIFE DIS. ADB TOTAL
---- ---- --- -----
Reinsurance Premiums:
First Year
Renewal
Total
Claim Payments
Claim Expenses*
Premium Taxes
(____% of Total Premium)
Net Amount Due: Check enclosed for: $_____________
Please remit check for: $_____________
SECTION II: POLICY EXHIBIT
NUMBER OF REINSURANCE
POLICIES AMOUNT AT RISK
-------- --------------
In Force Beginning of Month
Plus: Issued (listing attached)
Increased
Revived
Less: Deductions during Month
Death
Expiry
Lapse (listing attached)
Decrease
Recapture
In Force End of Month
*Investigate and Settlement
Legal Expense
Interest on claims
Claim Expenses
1
MONTHLY REPORT
SECTION III: POLICY LISTING
1. The following information must be provided for each policy issued during the
month:
a. Policy number
b. Policy issue date
c. Name of insured
d. Date of birth
e. Plan of insurance
f. Insurance face amount: Life
Insurance face amount: ADB
g. Reinsurance face amount: Life
Reinsurance face amount: ADB
x. Xxxxx reinsurance premium to be waived
Disability premium paid
i. Automatic/facultative
j. Substandard rating
2. The following information must be provided for every policy i) lapsed, ii)
with a changed substandard rating and/or iii) with a changed reinsurance
amount:
a. Policy number
b. Name of insured
x. Xxxx of birth
d. New reinsurance amount
e. New substandard rating
f. Effective date of change
2
Exhibit B
YRT
ANNUAL STATEMENT MATERIAL
To: CIGNA RE Date: ________________________
____ CG Business
____ XXXX Business Prepared By:_______________________
From: _________________________ Telephone: ________________________
Account:_______________________
EXHIBIT 8: Aggregate Reserve for Life Policies and Contracts (Reinsurance
Amounts)
Section A - Life Insurance
VALUATION AMOUNT OF LIFE
BASIS REINSURANCE RESERVE
----- ----------- -------
Section D - Accidental Death Benefits
VALUATION AMOUNT OF ADB
BASIS REINSURANCE RESERVE
----- ----------- -------
Section E - Disability: Active Lives
VALUATION BASIS ACTIVE LIFE RESERVE
--------------- -------------------
1
ANNUAL IN FORCE LISTING
Detail for policies in force with Connecticut General on December 31, 19__.
POLICY POLICY NAME OF DATE OF REINSURANCE FACE REINSURANCE FACE
NUMBER ISSUE DATE INSURED BIRTH AMOUNT (ON 12/31) AMOUNT AT RISK
------ ---------- ------- ----- ----------------- --------------
2
SCHEDULE E
YEARLY RENEWABLE TERM REINSURANCE PREMIUMS
Special Joint Last Survivor Rate Program, Non-Experience Rated Basis
Applicable to policies issued on the Joint Last Survivor Plan where both lives
are considered by Connecticut General to be insurable.
LIFE REINSURANCE: Premium rates are shown on pages 3 - 29 of this section. The
appropriate premium rate for any given policy is determined by the joint equal
age. The calculations used to determine the joint equal age are shown on page 2
of this schedule, and the substandard rate-up calculations are shown on pages
30, 31 and 32.
The total life reinsurance premium on standard cessions consists of 100% of the
appropriate rate per $1,000 applied to the amount at risk, except that the rates
for Non-Smoker/Non-Smoker policies issued for amounts in excess of $3,000,000
will be 108% of the appropriate rate per $1,000. In addition, a policy fee of
$25 per cession will be payable in all years; and on substandard cessions, a
rate-up in age will be incorporated.
Female lives are set back five (5) years.
The following steps are used to calculate the reinsurance rate:
1. Apply the five-year setback to change the female ages to male ages.
2. Calculate any age rate-up for the male ages according to the substandard
tables.
3. Calculate the joint equal age using the age difference based on the ages
resulting from steps 1 and 2 above.
4. Apply the resulting joint equal age to the appropriate premium rate
table to determine the rate per $1,000 of reinsurance. The premium rate
tables are smoker distinct for each life.
EXCHANGE OPTION RIDER: The reinsurance premium for the Exchange Option Rider is
zero in the first policy year and remains level in renewal years based on the
rates shown on pages 33 and 34 of this section.
1
SCHEDULE E
JOINT EQUAL AGE TABLE
AGE ADDITION TO
DIFFERENCE YOUNGER AGE
---------- -----------
0 0
1 - 2 1
3 - 4 2
5 - 6 3
7 - 8 4
9 - 10 5
11 - 12 6
13 - 15 7
16 - 18 8
19 - 21 9
22 - 24 10
25 - 28 11
29 - 32 12
33 - 36 13
37 - 40 14
41 - 44 15
45 - 48 16
49 - 52 17
53 - 56 18
57 - 60 19
To determine the Joint Equal Age, figure the age difference, look up the
"Addition to Younger Age" in this table and add it to the younger age.
2
SCHEDULE E - SECTION I
Joint and Last Survivor Premium Rates
Omitted 31 Pages
3
SCHEDULE E
YEARLY RENEWABLE TERM REINSURANCE PREMIUMS
Special Uninsurable Risk Rate Program, Non-Experience Rated Basis
Applicable to policies issued on the Joint Last Survivor Plan where only one of
the two joint lives is considered by Connecticut General to be insurable.
LIFE REINSURANCE: Premium rates are shown on pages 2 - 5 of this section. The
total life reinsurance premium on standard cessions and on those substandard
cessions with a percentage rating consists of the appropriate rate per $1,000
applied to the amount at risk, plus an annual fee of $25 per cession. On
substandard cessions involving flat extra premiums payable for more than five
years, the reinsurance flat extra premium is 20% of the reinsured portion of the
gross flat extra premium charged on the original policy in the first year and
75% in renewal years. When the flat extra premium is payable for five years or
less, the reinsurance flat extra premium is 75% in all years. Reinsurance
premiums on substandard risks will revert to the standard risk basis on the
policy anniversary on which the insured attains age 65 or on the 20th policy
anniversary, whichever is later.
Rates for females equal the rates for males five years younger.
INTERIM INSURANCE
Premiums for interim periods are calculated at the second policy year rate for
the insured's age at the beginning of the interim period. The premium for the
first full policy year will be calculated at the first year rate for the
insured's age at the beginning of the policy year. Annual fees are not charged
for interim periods.
EXCHANGES
For the purpose of determining the reinsurance premiums on exchange policies,
such premiums will be calculated based on the insureds' attained ages and the
duration since issue of the original policy.
1
SCHEDULE E
Single Life Mortality Rates
Omitted 4 Pages
2
AMENDMENT No. 1
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies that the attached Schedule B will be
substituted for the corresponding schedule attached to this agreement.
This amendment will be effective for policies issued with policy dates of
January 1, 1991 or later.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date April 8, 1992
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/ Xxxxx X. Xxxxx
--------------------------------------------
Date April 2, 1992
---------------------------------------
SCHEDULE B
Maximum Limits of Automatic Reinsurance in Connecticut General
LIFE INSURANCE
In cases where the America Group is retaining its maximum limits of retention as
shown in Schedule A, Connecticut General will provide automatic reinsurance
equal to two (2) times such maximum limits of retention on permanent plans,
subject to the following limits:
AGES STANDARD THROUGH 500%
---- ---------------------
20-70 $ 2,000,000
Civilian Aviation Limits will be considered maximum limits of retention for the
purpose of determining automatic reinsurance.
In cases where the America Group applied for reinsurance while retaining less
than its maximum limits of retention, Connecticut General will provide automatic
reinsurance equal to the retention of the America Group on the current
application for insurance.
SCHEDULE B
AMENDMENT No. 2
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies as follows:
1. The following section entitled JUMBO RISK DEFINED will be substituted for the
corresponding section of Article 2 of this agreement:
JUMBO RISK DEFINED
For the purpose of this agreement a jumbo risk is defined as one where the
commonly accepted underwriting evidence of insurability indicates that the
proposed insured's total life insurance in force and applied for in all
companies exceeds the following:
INSURANCE AGE TOTAL LINE
------------- ----------
20-80 $ 2,000,000
2. The following section entitled REDUCTIONS, CANCELLATIONS will be substituted
for the corresponding section of Article 10 of this agreement:
REDUCTIONS, CANCELLATIONS
Whenever a policy upon which reinsurance is based is reduced or
terminated, or whenever all or part of the insurance which was in force at
the date reinsurance was effected and not covered by previous reinsurance
is reduced or terminated, the reinsurance will be reduced by a like amount
as of the date of such reduction or termination. If reinsurance has been
effected in more than one company, the reduction in the reinsurance in
Connecticut General will be that proportion of the total amount of the
reduction which the reinsurance in Connecticut General is of the total
amount reinsured.
Notwithstanding the above, reinsurance under this agreement will be
cancelled automatically whenever the net amount at risk reduces to $25,000
or less.
3. The attached Schedules A and B will be substituted for the corresponding
schedules attached to this agreement.
This amendment will be effective for policies issued with policy dates of
January 1, 1993 or later.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date May 14, 1993
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-----------------------------------------
Date May 5, 1993
---------------------------------------
SCHEDULE A
Maximum Limits of Retention of State Mutual
LIFE INSURANCE
STANDARD RISKS,
SPECIAL CLASSES SPECIAL CLASSES
A THROUGH H AND J, L, & P, AND
ISSUE FLAT EXTRAS OF FLAT EXTRAS OF
AGES $20.00 OR LESS $20.01 AND OVER
---- -------------- ---------------
-0- $ 500,000 $ 250,000
1-60 2,000,000 1,000,000
61-70 1,000,000 500,000
71-80 500,000 250,000
(a) Spouse's Insurance Rider not available above Class D.
(b) Term policies and riders not available above Class H.
Notes: (1) The above maximum limits are also the maximums on any one
life for all plans and riders combined.
(2) State Mutual will retain those additional amounts which will
avoid reinsurance cessions of $50,000 or less.
(3) Any situation involving Aviation will use a $500,000
retention.
DISABILITY WAIVER OF PREMIUM
Fully Retained
ACCIDENTAL DEATH BENEFIT
Fully retained
SCHEDULE B
Maximum Limits of Automatic Reinsurance in Connecticut General
LIFE INSURANCE
In cases where State Mutual is retaining its maximum limits of retention as
shown in Schedule A, Connecticut General will provide automatic reinsurance
equal to one (1) times such maximum limits of retention, subject to the
following limits:
ISSUE AGE STANDARD THROUGH 300% 325% THROUGH 500%
--------- --------------------- -----------------
-0- $ 500,000 $ 250,000
1-60 2,000,000 1,000,000
61-70 1,000,000 500,000
71-80 500,000 250,000
In cases where State Mutual applied for reinsurance while retaining less than
its maximum limits of retention, Connecticut General will provide automatic
reinsurance equal to the retention of State Mutual on the current application
for reinsurance. This provision will be referred to as "Special Automatic
Reinsurance".
DAC TAX AMENDMENT
This amendment between STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA (referred
to as Ceding Company) and CONNECTICUT GENERAL LIFE INSURANCE COMPANY (referred
to as Assuming Company), collectively called the "Parties", hereby amends and
becomes part of all Reinsurance Agreement(s) between the Parties.
1. The attached DAC Tax Article, entitled IRC. Section 1.848-2(g)(8) Election,
is hereby added to the Agreement.
2. This Amendment does not alter, amend or modify the Reinsurance Agreement(s)
other than as stated in this Amendment. It is subject to all of the terms and
conditions of the Reinsurance Agreement(s) together with all Amendments and
Addendums.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date August 16, 1993
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-----------------------------------------
Date July 29, 1993
---------------------------------------
DAC TAX ARTICLE
IRC REG. SECTION 1.848-2(g)(8) ELECTION
1. The Parties hereby make an election pursuant to Internal Revenue Code
Regulation Section 1.848-2(g)(8). This election shall be effective for all
taxable years for which the Reinsurance Agreement remains in effect
commencing with the year ending December 31, 1991.
2. The terms used in this Addendum are defined by reference to Regulation
Section 1.848-2 promulgated on December 28, 1992.
3. The Party with net positive consideration for the reinsurance agreement for
each taxable year will capitalize specified policy acquisition expenses with
respect to the reinsurance agreement without regard to the general deductions
limitation of Section 848(c)(1) of the Internal Revenue Code of 1986, as
amended.
4. The Parties agree to exchange information pertaining to the amount of net
consideration under the reinsurance agreement each year to ensure
consistency. To achieve this, the Ceding Company shall provide the Assuming
Company with a schedule of its calculation of the net consideration for all
reinsurance agreements in force between them for a taxable year by no later
than May 1 of the succeeding year (by June 15 for tax year 1992). The
Assuming Company shall advise the Ceding Company if it disagrees with the
amounts provided by no later than May 31 (July 15 for 1992), otherwise the
amounts will be presumed correct and shall be reported by both parties in
their respective tax returns for such tax year. If the Assuming Company
contests the Ceding Company's calculation of the net consideration, the
Parties agree to act in good faith to resolve any differences within thirty
(3) days of the date the Assuming Company submits its alternative calculation
and report the amounts agreed upon in their respective tax returns for such
tax year.
5. The Parties shall attach to their respective 1992 federal income tax returns
a schedule specifying that the joint election herein has been made for this
reinsurance agreement.
6. The Assuming Company represents and warrants that it is subject to U.S.
taxation under either Subchapter L or Subpart F of Part III of Subchapter N
of the Internal Revenue Code of 1986, as amended.
AMENDMENT No. 3
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies that the attached SCHEDULE E - SECTION II,
Page 1 will be substituted for the corresponding page attached to this
agreement.
This amendment will be effective simultaneously with the inception of this
agreement.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date 12/20/93
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-----------------------------------------
Date (illegible)
---------------------------------------
SCHEDULE E
YEARLY RENEWABLE TERM REINSURANCE PREMIUMS
Special Uninsurable Risk Rate Program, Non-Experience Rated Basis
Applicable to policies issued on the Joint Last Survivor Plan where only one of
the two joint lives is considered by Connecticut General to be insurable.
LIFE REINSURANCE: Premium rates are shown on pages 2 - 5 of this section. The
total life reinsurance premium on standard cessions and on those substandard
cessions with a percentage rating consists of the appropriate rate per $1,000
applied to the amount at risk, plus an annual fee of $25 per cession. On
substandard cessions involving flat extra premiums payable for more than five
years, the reinsurance flat extra premium is 0% of the reinsured portion of the
gross flat extra premium charged on the original policy in the first year and
80% in renewal years. When the flat extra premium is payable for five years or
less, the reinsurance flat extra premium is 80% in all years. Reinsurance
premiums on substandard risks will revert to the standard risk basis on the
policy anniversary on which the insured attains age 65 or on the 20th policy
anniversary, whichever is later.
Rates for females equal the rates for males five years younger.
INTERIM INSURANCE
Premiums for interim periods are calculated at the second policy year rate for
the insured's age at the beginning of the interim period. The premium for the
first full policy year will be calculated at the first year rate for the
insured's age at the beginning of the policy year. Annual fees are not charged
for interim periods.
EXCHANGES
For the purpose of determining the reinsurance premiums on exchange policies,
such premiums will be calculated based on the insureds' attained ages and the
duration since issue of the original policy.
1
AMENDMENT No. 4
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies that the attached SCHEDULE E - SECTION II,
Page 1 will be substituted for the corresponding page attached to this
agreement.
This amendment will be effective for policies issued with policy dates of
January 1, 1994 or later.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date 12/20/93
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-----------------------------------------
Date 12/20/93
---------------------------------------
SCHEDULE E
YEARLY RENEWABLE TERM REINSURANCE PREMIUMS
Special Joint Last Survivor Rate Program, Non-Experience Rated Basis
Applicable to policies issued on the Joint Last Survivor Plan where both lives
are considered by Connecticut General to be insurable.
LIFE REINSURANCE: Premium rates are shown on pages 3 - 29 of this section. The
appropriate premium rate for any given policy is determined by the joint equal
age. The calculations used to determine the joint equal age are shown on page 2
of this schedule, and the substandard rate-up calculations are shown on pages
30, 31 and 32.
The total life reinsurance premium on standard cessions consists of 100% of the
appropriate rate per $1,000 applied to the amount at risk, except that the rates
for Non-Smoker/Non-Smoker policies issued for amounts in excess of $3,000,000
will be 108% of the appropriate rate per $1,000. In addition, a policy fee of
$25 per cession will be payable in all years; and on substandard cessions, a
rate-up in age will be incorporated.
Female lives are set back five (5) years.
The following steps are used to calculate the reinsurance rate:
1. Apply the five-year setback to change the female ages to male ages.
2. Calculate any age rate-up for the male ages according to the substandard
tables.
3. Calculate the joint equal age using the age difference based on the ages
resulting from steps 1 and 2 above.
4. Apply the resulting joint equal age to the appropriate premium rate
table to determine the rate per $1,000 of reinsurance. The premium rate
tables are smoker distinct for each life.
EXCHANGE OPTION RIDER: The reinsurance premium for the Exchange Option Rider is
zero in the first policy year and remains level in renewal years based on the
rates shown on pages 33 and 34 of this section.
1
SCHEDULE E
YEARLY RENEWABLE TERM REINSURANCE PREMIUMS
Special Uninsurable Risk Rate Program, Non-Experience Rated Basis
Applicable to policies issued on the Joint Last Survivor Plan where only one of
the two joint lives is considered by Connecticut General to be insurable.
LIFE REINSURANCE: Premium rates are shown on pages 2 - 5 of this section. The
total life reinsurance premium on standard cessions and on those substandard
cessions with a percentage rating consists of the appropriate rate per $1,000
applied to the amount at risk. On substandard cessions involving flat extra
premiums payable for more than five years, the reinsurance flat extra premium is
0% of the reinsured portion of the gross flat extra premium charged on the
original policy in the first year and 80% in renewal years. When the flat extra
premium is payable for five years or less, the reinsurance flat extra premium is
80% in all years. Reinsurance premiums on substandard risks will revert to the
standard risk basis on the policy anniversary on which the insured attains age
65 or on the 20th policy anniversary, whichever is later.
Rates for females equal the rates for males five years younger.
INTERIM INSURANCE
Premiums for interim periods are calculated at the second policy year rate for
the insured's age at the beginning of the interim period. The premium for the
first full policy year will be calculated at the first year rate for the
insured's age at the beginning of the policy year. Annual fees are not charged
for interim periods.
EXCHANGES
For the purpose of determining the reinsurance premiums on exchange policies,
such premiums will be calculated based on the insureds' attained ages and the
duration since issue of the original policy.
1
AMENDMENT No. 5
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies that the following section entitled
EXTRA-CONTRACTUAL DAMAGES will be substituted for the corresponding section of
Article 12 of this agreement:
EXTRA-CONTRACTUAL DAMAGES
Connecticut General assumes no liability under this Agreement or otherwise
for any extra-contractual damages assessed against State Mutual, based
upon bad faith, failure to exercise good judgement, or tortious conduct.
In determining the reason for the assessment of any damages against State
Mutual, the parties will not be required to follow the reason indicated by
the court which awarded such damage. Rather, the parties will act in good
faith to determine the actual reason for the award.
This amendment will be effective simultaneously with the inception of this
agreement.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date 2/22/94
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-----------------------------------------
Date 2/9/94
---------------------------------------
AMENDMENT No. 6
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies as follows:
1. The following Article 1 entitled APPLICATION OF AGREEMENT will be substituted
for the corresponding article of this agreement:
APPLICATION OF AGREEMENT
Reinsurance under this agreement will apply to life reinsurance issued by
State Mutual on its Joint Last Survivor Plans know as Inheiritage (Form
No. 1020-89) and Variable Inheiritage (Form No. 1026-94). Such reinsurance
will include those policies issued when one participant of the joint
policy is uninsurable, provided that the underwriting assessment of the
insurable participant is no higher than Table 6 (250%); and will also
include those policies issued in conversion or exchange of existing
individual life policies whether originally reinsured in Connecticut
General or not.
2. The attached SCHEDULE E - SECTION I, Page 1 will be substituted for the
corresponding page attached to this agreement.
This amendment will be effective for policies issued with policy dates of May
1,1994 or later.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
By /s/ Xxxxxx X. Xxxxx, Xx.
-----------------------------------------
Date May 11, 1994
---------------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-----------------------------------------
Date May 11, 1994
---------------------------------------
SCHEDULE E
YEARLY RENEWABLE TERM REINSURANCE PREMIUMS
Special Joint Last Survivor Rate Program, Non-Experience Rated Basis
Applicable to policies issued on the Joint Last Survivor Plan where both lives
are considered by Connecticut General to be insurable.
LIFE REINSURANCE: Premium rates are shown on pages 3 - 29 of this section. The
appropriate premium rate for any given policy is determined by the joint equal
age. The calculations used to determine the joint equal age are shown on page 2
of this schedule, and the substandard rate-up calculations are shown on pages
30, 31 and 32.
The total life reinsurance premium on standard cessions consists of 100% of the
appropriate rate per $1,000 applied to the amount at risk, except that the rates
for Non-Smoker/Non-Smoker policies issued for amounts in excess of $3,000,000
will be 108% of the appropriate rate per $1,000. In addition, on substandard
cessions, a rate-up in age will be incorporated.
Female lives are set back five (5) years.
The following steps are used to calculate the reinsurance rate:
1. Apply the five-year setback to change the female ages to male ages.
2. Calculate any age rate-up for the male ages according to the substandard
tables.
3. Calculate the joint equal age using the age difference based on the ages
resulting from steps 1 and 2 above.
4. Apply the resulting joint equal age to the appropriate premium rate
table to determine the rate per $1,000 of reinsurance. The premium rate
tables are smoker distinct for each life.
EXCHANGE OPTION RIDER: The reinsurance premium for the Exchange Option Rider is
zero in the first policy year and remains level in renewal years based on the
rates shown on pages 33 and 34 of this section.
ESTATE PROTECTOR RIDER: The reinsurance premiums for the Estate Protector Rider
(Form No. 1079-94) are:
AVERAGE ISSUE AGE ANNUAL RATE PER $1000
----------------- ---------------------
5-7 $ 0.84
8-46 0.96
47-54 1.08
55-59 1.20
60-63 1.32
64-85 1.44
1
AMENDMENT No. 7
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies as follows:
1. WHEREAS, State Mutual has changed its name to First Allmerica Financial Life
Insurance Company; and
2. WHEREAS, SMA Life Assurance Company has changed its name to Allmerica
Financial Life Insurance and Annuity Company (hereinafter called Allmerica
Financial Life);
3. NOW, THEREFORE, this agreement is deemed to be between First Allmerica
Financial Life Insurance Company (hereinafter called First Allmerica
Financial) and Connecticut General, and all references to SMA Life are deemed
to mean Allmerica Financial Life.
4. All provisions of this agreement, as previously amended, will continue in
full force and effect.
This amendment will be effective October 11, 1995.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By /s/ Xxxxxx X. Xxxxx, Xx.
-------------------------------------
Date November 22, 1995
-----------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-------------------------------------
Date 12-1-95
-----------------------------------
AMENDMENT No. 8
to the
Yearly Renewable Term Reinsurance Agreement Effective May 1, 1989
between
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
It is agreed by the two companies as follows:
1. The following Article 1 entitled APPLICATION OF AGREEMENT will be substituted
for the corresponding article of this Agreement:
APPLICATION OF AGREEMENT
Reinsurance under this Agreement will apply to life reinsurance issued by
First Allmerica Financial on its Joint Last Survivor Plans known as
Inheiritage (Form No. 1020-89), Variable Inheiritage (Form No. 1026-94) and
Single Premium Variable Universal Life (Form No. 1030-96). Such Reinsurance
will include those policies issued when one participant of the joint policy
is uninsurable, provided that the underwriting assessment of the insurable
participant is no higher than Table 6 (250%); and will also include those
policies issued in conversion or exchange of existing individual life
policies whether originally reinsured in Connecticut General or not.
2. The following Article 7 subsection entitled AMOUNTS AT RISK will be
substituted for the corresponding subsection of Article 7 of this Agreement:
AMOUNT AT RISK
In the year of issue the amount at risk for all plans covered under this
Agreement, excluding the Single Premium Variable Universal Life Plan, is
defined as the amount of insurance reinsured. For the Single Premium Variable
Universal Life Plan, the amount at risk in the year of issue is defined as
the amount of insurance reinsured less 33% of the single premium for
automatic reinsurance and less the entire single premium for facultative
reinsurance. The first year net amount at risk must equal or exceed $50,001
for any reinsurance to be ceded.
In all subsequent policies years, the amount at risk is defined as the amount
of insurance reinsured less 33% of the accumulated policy value on the entire
policy at the end of the prior policy year for automatic reinsurance and less
all accumulated policy values for facultative reinsurance and any exchanges.
1
Increases in the death benefit that are underwritten in accordance with First
Allmerica Financial's usual underwriting standards for individually selected
risks for new issues will be considered as new insurance for the purpose of
determining the reinsurance amount at risk.
This amendment will be effective for policies issued with policy dates of
February 1, 1997 or later.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY
By /s/ Xxxxxx X. Xxxxx, Xx.
-------------------------------------
Date May 18, 1997
-----------------------------------
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/
-------------------------------------
Date May 15, 1997
-----------------------------------
2
