AUTOMATIC YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
between
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
and
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Effective: June 15, 2001
ARTICLES
I. Parties to the Agreement 3
II. Reinsurance Coverage 3
III. Liability 4
IV. Notification of Reinsurance 4
V. Reinsurance Premiums 5
VI. Oversights 7
VIII. Reductions, Terminations, and Changes 7
IX. Increase in Retention 8
X. Reinstatement 8
XI. Expenses 9
XII. Claims 9
XIII. Extra-Contractual Damages 11
XIV. Inspection of Records 11
XV. DAC Tax - Section 1.848-2 (g)(8) Election 11
XVI. Insolvency 12
XVII. Offset 13
XVIII. Arbitration 13
XIX. Termination 15
XX. Entire Agreement and Amendments 15
XXI. Confidentiality 15
XXII. Notices and Communications 16
XXIII. Effective Date 17
XXIV. Execution 17
SCHEDULES
A. Specifications 18
B. Basis of Reinsurance 19
EXHIBITS
I. Reinsurance Premium Calculation 20
II. Retention, Binding, and Issue Limits 21
III. Premium Rates 22
ALL SCHEDULES AND EXHIBITS ATTACHED WILL BE CONSIDERED PART OF THIS REINSURANCE
AGREEMENT.
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ARTICLE I
PARTIES TO THE AGREEMENT
This Agreement is between three Hartford Life Companies, Hartford Life Insurance
Company, Hartford Life and Accident Insurance Company, and Hartford Life and
Annuity Insurance Company (collectively referred to as the Ceding Company) and
The Lincoln National Life Insurance Company (referred to as the Reinsurer). The
Reinsurer agrees that the terms and conditions of this Agreement shall apply to
each of the Hartford Life Companies individually, unless otherwise set forth
herein.
ARTICLE II
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of Insurance
shall be reinsured with the Reinsurer on an automatic basis, subject to the
requirements set forth in Section A below. The specifications for all
reinsurance under this Agreement are provided in Schedule A.
A. Requirements for Automatic Reinsurance
For risks which meet the requirements for automatic reinsurance as set forth
below, Reinsurer will participate in a reinsurance Pool whereby Reinsurer will
automatically reinsure a portion of the insurance risks as indicated in Schedule
A. The requirements for automatic reinsurance are as follows:
1. The individual risk must be a resident of the United States or Canada at the
time of application.
2. The individual risk must be underwritten according to the Ceding Company's
standard underwriting practices and guidelines. This individual risk will be
determined to be a true Table 1,2,3 or 4 based on the Ceding Company's normal
underwriting guidelines and will be issued as a Standard Risk.
3. Any risk offered on a facultative basis by the Ceding Company to the
Reinsurer or any other company will not qualify for automatic reinsurance under
this Agreement for the same risk and same life.
4. The minimum issue age on any risk will be age 5 and the maximum issue age on
any risk will be age 75.
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B. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in Schedule B.
C. Policy Forms
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material that
applies to the life insurance reinsured hereunder.
ARTICLE III
LIABILITY
A. The Reinsurer's liability for automatic reinsurance will begin
simultaneously with the Ceding Company's liability.
B. In no event shall the reinsurance be in force and binding if the issuance
and delivery of such insurance constituted the doing of business in a
jurisdiction in which the Ceding Company was not properly licensed.
C. The Reinsurer's liability for reinsurance on the individual risk will
terminate when the Ceding Company's liability terminates.
D. Each pool member's liability shall be separate and not joint liability with
the other pool members.
E. Payment of reinsurance premiums is a condition precedent to the Reinsurer's
liability.
F. The Reinsurer shall establish reserves on Reinsurer's position of the policy
on the reserve basis specified in Schedule B.
ARTICLE IV
NOTIFICATION OF REINSURANCE
A. For automatic reinsurance, the Ceding Company will notify the Reinsurer on
the monthly statement as described in Article V.
B. When reinsurance is reduced or changed, the Ceding Company will notify the
Reinsurer on the monthly accounting statement.
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ARTICLE V
REINSURANCE PREMIUMS
A. Computation
Premiums for reinsurance under this Agreement will be computed as described in
Exhibit I.
B. Premium Accounting
1. Payment of Reinsurance Premiums
For automatic reinsurance, following the close of each calendar month, the
Ceding Company will send the Reinsurer a statement and a listing of new
business, changes and terminations.
If a net reinsurance premium balance is payable to the Reinsurer, the Ceding
Company will forward this balance within (60) sixty days after the close of each
month.
If a net reinsurance premium balance is payable to the Ceding Company, the
balance due will be subtracted from the reinsurance premium payable by Ceding
Company for the current month and any remaining balance due the Ceding Company
shall be paid by the Reinsurer within (60) sixty days after the Ceding Company
submits the statement.
2. Termination Because of Non-Payment of Premium
If reinsurance premiums are delinquent, the Reinsurer has the right to terminate
the reinsurance risks on the monthly statement by giving the Ceding Company
ninety days' advance written notice. If the delinquent premiums have not been
paid as of the close of the ninety-day period, the Reinsurer's liability will
terminate for:
a. The risks described in the preceding sentence, and
b. The risks where the reinsurance premiums became delinquent during the
ninety day period.
Regardless of the termination, the Ceding Company will continue to be liable to
the Reinsurer for all unpaid reinsurance premiums earned.
3. Reinstatement of a Delinquent Statement
The Ceding Company may reinstate the terminated risks within sixty days after
the effective date of termination by paying the unpaid reinsurance premiums for
the risks in force prior to the termination. However, the Reinsurer will not be
liable for any claim incurred between the date of termination and reinstatement.
The effective date of reinstatement will be the date the required back premiums
are received.
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4. Currency
The reinsurance premiums and benefits payable under this Agreement will be
payable in the lawful money of the United States.
5. Detailed Listing
Upon request only, the Ceding Company will send the Reinsurer a detailed listing
of all automatic reinsurance in force as of the close of the immediately
preceding calendar year.
6. Guaranteed Rates
Although the Reinsurer anticipates continuing to accept reinsurance rates at the
current level, the Reinsurer reserves the right to increase the reinsurance
rates but only when the Ceding Company increases the rates to the policy owner.
The increase to the reinsurance rates on a given policy shall be no more than
proportional to the increase to the policy owner's rates.
7. Overpayment of Premium
If the Ceding Company overpays a reinsurance premium and the Reinsurer accepts
the overpayment, the Reinsurer's acceptance will not constitute nor create a
reinsurance liability nor result in any additional reinsurance. Instead, the
Reinsurer will be liable to the Ceding Company for a credit in the amount of the
overpayment.
8. Underpayment of Premium
If the Ceding Company fails to make a full premium payment for a policy or
policies reinsured hereunder, due to an oversight defined in Article VI, the
amount of reinsurance coverage provided by the Reinsurer shall not be reduced.
However, once the underpayment is discovered, the Ceding Company will be
required to pay to the Reinsurer the difference between the full premium amount
and the amount actually paid, without interest. If payment or the full premium
is not made within 60 days after the discovery of the underpayment, the
underpayment shall be treated as a failure to pay premiums and subject to the
conditions of Section B.2, above.
The Reinsurer reserves the right to charge interest on overdue premiums. The
interest will be calculated according to the 90 Day Federal Government Treasury
Bill rate as first published in the Wall Street Journal in the month following
the end of the billing period plus 50 basis points. The method of calculation
will be simple interest "Bankers' Rule" (or 360 day year).
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ARTICLE VI
OVERSIGHTS
If there is an unintentional oversight, misunderstanding, delay or error in the
administration of this Agreement by Ceding Company or Reinsurer, it can be
corrected provided the correction takes place within a reasonable time after the
oversight, misunderstanding, delay or error is first discovered. Both Ceding
Company and the Reinsurer will be restored to the position they would have
occupied had the oversight or misunderstanding not occurred.
ARTICLE VIII
REDUCTIONS, TERMINATIONS AND CHANGES
A. Replacement or Change
If there is a contractual change, or non-contractual replacement of the
insurance reinsured under this Agreement where full underwriting evidence
according to the Ceding Company's regular underwriting rules is not required,
the insurance may continue to be reinsured with the Reinsurer at point in scale
rates provided it meets the minimum reinsurance cession amount stated in
Schedule A.
B. Increases or Decreases
1. If the policy face amount of a risk reinsured automatically under this
Agreement increases and:
a. The increase is subject to new underwriting evidence, then the
provisions of Article II, Section A, shall apply to the increase in
reinsurance.
b. The increase is not subject to new underwriting evidence, then
Reinsurer will accept automatically the increase in reinsurance but
not to exceed the automatic binding limit.
C. Reduction in Retained Coverage
If any portion of the aggregate insurance retained by Ceding Company on an
individual life reduces or terminates, Ceding Company will recalculate its
retention on any remaining risk(s) inforce on that life with the intent of
holding the appropriate retention under each applicable reinsurance agreement.
The retention limit which was in effect at the time that each remaining risk was
issued will be used. The Ceding Company will not be required to retain an amount
in excess of its regular retention limit for the age, mortality rating, and risk
classification at the time of issue for any policy. Ceding Company will first
recalculate the retention on the policy(ies) having the same mortality rating as
the terminated policy(ies). Order of recalculation will secondarily be
determined by policy effective date, oldest first.
D. Termination
If the policy for a risk reinsured under this Agreement is terminated, the
reinsurance for
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the risk involved will be terminated on the effective date of termination.
E. Multiple Reinsurers
If a risk is shared by more than one Reinsurer, Reinsurer's percentage of any
increased or reduced reinsurance will be the same as its initial percentage of
the reinsurance for that risk.
ARTICLE IX
INCREASE IN RETENTION
A. If the Ceding Company should increase the retention limits as listed in
Exhibit II, prompt written notice of the increase must be given to the
Reinsurer.
B. In the event of an increase in retention, the Ceding Company will have the
option of recapturing the reinsurance under this Agreement when the retention
limit increases. The Ceding Company may exercise it's option to recapture by
giving written notice to the Reinsurer within ninety days after the effective
date of the increase.
C. If the Ceding Company exercises its option to recapture, then
1. The Ceding Company must reduce the reinsurance on each individual life on
which the Ceding Company retained the maximum retention limit for the age and
mortality rating that was in effect at the time the reinsurance was ceded to the
Reinsurer.
2. No recapture will be made to reinsurance on an individual life if (a) the
Ceding Company retained a special retention limit less than the maximum
retention limit for the age and mortality rating in effect at the time the
reinsurance was ceded to the Reinsurer, or if (b) the Ceding Company did not
retain insurance on the life.
3. The Ceding Company must increase its total amount of insurance on the
individual life up to the new retention limit by reducing the reinsurance. If an
individual life is shared by more than one reinsurer, the Reinsurer's percentage
of the reduced reinsurance will be the same percentage as the initial
reinsurance on the individual risk.
4. The reduction in reinsurance will become effective on the next annual
premium anniversary after the individual policy has been inforce for at least
ten (10) years.
ARTICLE X
REINSTATEMENT
If an insurance policy lapses for nonpayment of premium and is reinstated under
the Ceding Company's terms and rules, the Reinsurer will reinstate the
reinsurance as follows:
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A. Automatic Cases
The Ceding Company must pay the Reinsurer all back reinsurance premiums in the
same manner as the Ceding Company received insurance premiums under the policy.
When the policy is reinstated by the Ceding Company, the reinsurance will be
automatically reinstated.
ARTICLE XI
EXPENSES
The Ceding Company must pay the expense of all medical examinations, inspection
fees and other charges in connection with the issuance of the insurance.
ARTICLE XII
CLAIMS
A. Liability
The Reinsurer's liability for the insurance benefits reinsured under this
Agreement will be the same as the Ceding Company's liability for such benefits.
All reinsurance claim settlements will be subject to the terms and conditions of
the particular contract under which the Ceding Company is liable.
B. Notification
When the Ceding Company is advised of a claim, the Reinsurer must be notified
promptly.
C. Claim Payment
If a claim is made under insurance reinsured under this Agreement, Reinsurer
will abide by the issue as it is settled by the Ceding Company. Copies of proofs
or other written matters relating to any claim reimbursements under this
Agreement shall be furnished to the Reinsurer upon written request. The Ceding
Company will receive payment of the reinsurance proceeds when the Ceding Company
makes the settlement of the policy proceeds. The Ceding Company will deliver a
copy of the proof of death, check copy or proof of payment and the claimant's
statement to the Reinsurer.
Payment of life reinsurance proceeds will be made in a single sum regardless of
the Ceding Company's mode of settlement with the payee.
The Ceding Company reserves the right to charge interest on reinsurance
proceeds. The interest will be calculated according to the 90 Day Federal
Government Treasury Bill rate as first published in the Wall Street Journal in
the month following the end of the billing period plus 50 basis points. The
method of calculation will be simple interest "Bankers' Rule" (or 360 day year).
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D. Contested Claims
The Ceding Company must promptly notify the Reinsurer of any intent to contest
insurance reinsured under this Agreement or to assert defenses, and if the
Ceding Company's contest of such insurance results in the increase or reduction
of liability, the Reinsurer will share in this increase or reduction. The
Reinsurer's percentage of the increase or reduction will be the net amount at
risk on the individual life as it relates to the total net amount at risk on the
date of the death of the insured.
If the Reinsurer should decline to participate in the contest or assertion of
defenses, the Reinsurer will then release all of its liability by paying the
Ceding Company the full amount of reinsurance and not sharing in any subsequent
increase or reduction in liability.
If the Reinsurer should recommend that the Ceding Company contest any claim
during the contestable period and this decision is not agreed to by the Ceding
Company, the Reinsurer shall indemnify the Ceding Company for any expenses,
liabilities, judgements, awards and costs the Ceding Company may incur from the
denial of the claim.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or reduced because of misstatement of age or sex
established after the death of the insured, the Reinsurer will share with the
Ceding Company in this increase or reduction.
F. Routine Expenses
The Ceding Company will pay the routine expenses incurred in connection with
settling claims. These expenses may include compensation of agent and employees
and the cost of routine investigations such as inspection reports.
G. Non-Routine Expenses
The Reinsurer will share with the Ceding Company all expenses that are not
routine. Expenses that are not routine are those directly incurred in connection
with the contest or the possibility of a contest of insurance or the assertion
of defenses, including legal expenses. The expenses will be shared in proportion
to the net amount at risk for both companies. However, if the Reinsurer has
released the liability under Section D of this Article, the Reinsurer will not
share in any expenses incurred after the date of the Reinsurer's release.
X. Xxxxxxxxxxx Period
If, during the contestable period, Ceding Company is notified of the death of
the insured, the Ceding Company will investigate the case.
I. Return of Premium for Misrepresentations and Suicides
If a misrepresentation or misstatement on an application or a death of an
insured risk by
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suicide results in the Ceding Company returning the policy premiums to the
policy owner rather than paying the policy benefits, the Reinsurer will refund
all of the reinsurance premiums it received on that policy to the Ceding
Company. This refund given by the Reinsurer will be in lieu of all other
reinsurance benefits payable on that policy under this Agreement.
ARTICLE XIII
EXTRA-CONTRACTUAL DAMAGES
In no event will the Reinsurer have any liability for any extra-contractual
damages which are awarded against the Ceding Company as a result of acts,
omissions or course of conduct committed solely by the Ceding Company with no
involvement of the Reinsurer in connection with the insurance reinsured under
this Agreement.
The Reinsurer does recognize that circumstances may arise under which the
Reinsurer, in equity, should share, to the extent permitted by law, in paying
certain assessed damages. Such circumstances are difficult to define in advance,
but involve those situations in which the Reinsurer was a party in the act,
omission or course of conduct which ultimately results in the assessment of such
damages. The extent of such sharing is dependent on good faith assessment of
culpability in each case, but all factors being equal, the division of any such
assessment would be in the proportion of total risk accepted by each party for
the plan of insurance involved.
ARTICLE XIV
INSPECTION OF RECORDS
Each party will have the right, at any reasonable time, to inspect the other
party's books and documents that relate to reinsurance under this Agreement.
ARTICLE XV
DAC TAX
SECTION 1.848-2(g)(8) ELECTION
A. The Ceding Company and the Reinsurer jointly agree to the DAC Tax Election
pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations (the "Treasury
Regulations") issued under Section 848 of the Internal Revenue Code of 1986, as
amended (the "Code") whereby:
(i) The party with the net positive 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 Code section 848(c)(1); and
(ii) Both parties agree to exchange information pertaining to the amount
of net consideration under this Agreement each year to ensure
consistency.
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B. As used in this Article XV, the terms "net positive consideration",
"specified policy acquisition expenses" and "general deductions limitation" are
defined by reference to Treasury Regulations Section 1.848-2(g)(8) and Code
Section 848 as of June 15, 2001.
C. The method and timing of the exchange of this information shall be as
follows:
(i) The Ceding Company shall submit a schedule to the Reinsurer by May 1
of each year of its calculation of the net consideration for the
preceding calendar year.
(ii) The Reinsurer shall, in turn, complete the schedule by indicating
acceptance of the Ceding Company's calculation of net consideration
or shall note in writing any discrepancies. The Reinsurer shall
return the completed schedule to the Ceding Company by June 1 of
each year.
(iii) If there are any discrepancies between the Ceding Company's and the
Reinsurer's calculation of net consideration, the parties shall act
in good faith to resolve these discrepancies in a manner that is
acceptable to both parties by July 1 of each year.
(iv) Each party shall attach the final schedule to their respective U.S.
federal income tax returns for each taxable year in which
consideration is transferred under this Agreement. The schedule
shall identify this Agreement and restate the election described in
this Article XV and shall be signed by both parties.
D. This DAC Tax Election shall be effective on the effective date of this
Agreement and shall be effective for all years for which this Agreement remains
in effect.
E. The Ceding Company and the Reinsurer each represent and warrant that they
are subject to U.S. taxation under either the provisions of Subchapter L of
Chapter 1 or Subpart F of Part III of Subchapter N of Chapter 1 of the Code.
F. Should the Reinsurer breach the representation and warranty of tax status
set forth in Article XV of this Agreement, the Reinsurer agrees to indemnify and
hold the Ceding Company, its directors, officers, employees, agents and
shareholders, harmless from any liability and all liability, loss, damages,
fines, penalties, interest and reasonable attorney's fees, which the Ceding
Company, its directors, officers, employees, agents and shareholders, may
sustain by reason of such breach.
ARTICLE XVI
INSOLVENCY
A. Insolvency of Reinsurer
If the Reinsurer becomes insolvent as determined by the Department of Insurance
responsible for such determination, amounts due the Reinsurer will be paid net
of the terms of this Agreement and directly to the liquidator, receiver, or
statutory successor without decrease. All reinsurance ceded under this Agreement
may be recaptured by the Ceding Company without charge or penalty as of the date
Reinsurer fails to meet its
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obligations under this Agreement.
B. Insolvency of Ceding Company
If Hartford Life Insurance Company, Hartford Life and Accident Insurance Company
or Hartford Life and Annuity Insurance Company should become insolvent, all
reinsurance under this Agreement covering risks ceded by that particular company
will be payable by Reinsurer directly to that Company's liquidator, receiver or
statutory successor, on the basis of the liability of that Company under the
policy or policies reinsured and without diminution because of the insolvency of
the Company. However, in the event of such insolvency, the liquidator, receiver
or statutory successor will give written notice of a pending claim against
Ceding Company on the reinsured policy. It will do so within a reasonable time
after the claim is filed in the insolvency proceedings. During the pendency of
such a claim, Reinsurer may investigate the claim and may, at its own expense,
interpose any defense or defenses which it may deem available to the insolvent
Company, its liquidator, receiver or statutory successor, in the proceedings
where the claim is to be adjudicated.
The expense thus incurred by Xxxxxxxxx will be chargeable against the insolvent
Company, subject to court approval, as part of the expense of liquidation to the
extent of a proportionate share of the benefit which may accrue to the insolvent
Company solely as a result of the defense undertaken by Reinsurer.
Where two or more reinsurers are involved in the same claim and a majority in
interest elect to interpose defense to the claim, the expense will be
apportioned in accord with the terms of the reinsurance agreement as though the
expense had been incurred by the insolvent Company.
It is agreed that the insolvency of any one of the Hartford Life Companies shall
not affect this Agreement as it applies to the remaining solvent companies.
ARTICLE XVII
OFFSET
Any debts or credits, matured or unmatured, liquidated or unliquidated,
regardless of when they arose or were incurred, in favor of or against either
the Ceding Company or the Reinsurer with respect to this shall be offset, and
only the balance shall be allowed or paid. In the event the Ceding Company
becomes insolvent, offsets shall be allowed in accordance with applicable law.
ARTICLE XVIII
ARBITRATION
The Ceding Company and the Reinsurer mutually understand and agree that the
wording and interpretation of this Agreement is based on the usual customs and
practice of the insurance and reinsurance industry. While both the Ceding
Company and the Reinsurer agree to act in
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good faith in its dealings with each other, it is understood and recognized that
situations may arise in which they cannot reach an Agreement.
In the event that any dispute cannot be resolved to mutual satisfaction, the
dispute will first be subject to good-faith negotiation as described below in an
attempt to resolve the dispute without the need to institute formal arbitration
proceedings.
Within ten days after one of the parties has given the other the first written
notification of the specific dispute, each of the parties will appoint a
designated officer to attempt to resolve the dispute. The officers will meet at
a mutually agreeable location as early as possible and as often as necessary, in
order to gather and furnish the other with all appropriate and relevant
information concerning the dispute. The officers will discuss the problem and
will negotiate in good faith without the necessity of any formal arbitration
proceedings. During the negotiation process, all reasonable requests made by one
officer to the other for information will be honored. The designated officers
will decide the specific format for such discussions.
If the officers cannot resolve the dispute within thirty days of their first
meeting, both parties agree that they will submit the dispute to formal
arbitration. However, the parties may agree in writing to extend the negotiation
period for an additional thirty days.
No later than fifteen days after the final negotiation meeting, the officers
taking part in the negotiation will give both the Ceding Company and the
Reinsurer written confirmation that they are unable to resolve the dispute and
that they recommend establishment of formal arbitration.
An arbitration panel consisting of three past or present officers of life
insurance and reinsurance companies not affiliated with either of the parties in
any way will settle the dispute. Each party will appoint one arbitrator and the
two will select a third. If the two arbitrators cannot agree on the choice of a
third within 30 days following their appointment, each arbitrator shall nominate
three candidates within 10 days thereafter, two of whom the other shall decline,
and the decision shall be made by drawing lots.
The Ceding Company and the Reinsurer shall bear the expense of its own
arbitrator and shall jointly bear with the other the expense of the third
arbitrator. In the absence of a decision to the contrary by the arbitration
panel, the Ceding Company and the Reinsurer shall jointly share in all other
costs of the arbitration.
The arbitration proceedings will be conducted according to the Commercial
Arbitration Rules of XXXXX-US, which are in effect at the time the arbitration
begins.
The arbitration will take place in Hartford, Connecticut unless the parties
mutually agree otherwise.
Within sixty days after the beginning of the arbitration proceedings the
arbitrators will issue a written decision on the dispute and a statement of any
award to be paid as a result. The decision will be based on the terms and
conditions of this Agreement as well as the usual customs and practices of the
insurance and reinsurance industry, rather than on strict interpretation of the
law. The decision will be final and binding on both the Ceding Company and the
Reinsurer and there will be no further appeal.
The parties may mutually agree to extend any of the negotiation or arbitration
periods shown in
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this Article.
Unless otherwise decided by the arbitrators, the parties will share in their
proportion of all expenses resulting from the arbitration, including the fees
and expenses for the arbitrators, except that each Party will be responsible for
its own attorneys' fees.
ARTICLE XIX
TERMINATION
A. Each Hartford Life Insurance Company and the Reinsurer may terminate this
Agreement as it applies to the new business of each by giving (90) ninety days'
written notice of termination. The day the notice is deposited in the mail
addressed to the Home Office, or to an Officer of each party, will be the first
day of the (90) ninety-day period.
B. During the (90) ninety-day period, this Agreement will continue to be in
force between the terminating parties.
C. After termination, the terminating parties shall remain liable under the
terms of this Agreement for all automatic reinsurance that becomes effective
prior to termination of this Agreement. After termination the terminating
parties shall be liable for all automatic reinsurance which has an application
date on or before the effective date of the termination.
ARTICLE XX
ENTIRE AGREEMENT AND AMENDMENTS
A. Entire Contract
This Agreement with any attached Schedules and Exhibits shall constitute the
entire contract between the parties with respect to the business being reinsured
hereunder and there are no understandings between the parties other than as
expressed herein.
B. Modifications
Any modification or change to the provisions of this Agreement shall be null and
void unless set forth in a written amendment to the Agreement which is signed by
all parties to the amendment.
ARTICLE XXI
CONFIDENTIALITY
As used herein, "Confidential Information" means all of our confidential,
proprietary or trade secret information, including, but not limited to, all
information on Ceding Company's customers and claimants and other information
the Ceding Company discloses to the Reinsurer.
The Reinsurer shall maintain the confidentiality of the Confidential
Information, shall use it only for purposes for which it was disclosed and shall
not disclose it to any other person except to
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employees, agents and other persons who need to know such Confidential
Information to carry out the purposes for which it was disclosed and who agree
to maintain the confidentiality of the information provided herein.
ARTICLE XXII
NOTICES AND COMMUNICATIONS
All notices and communications under this treaty should be sent to:
Individual Life Product Financial Analysis
Hartford Life
000 Xxxxxxxxx Xx.
Xxxxxxxx, XX 00000
(currently) Attn: Xxxxxx X. Xxxxxxxx, FSA, MAAA
Assistant Vice President
With a copies to:
Chief Actuary
Hartford Life
000 Xxxxxxxxx Xx.
Xxxxxxxx, XX 00000
(currently) Attn: Xxxxx Xxxxxxx, FSA, MAAA
Executive Vice President
General Counsel
Hartford Life
000 Xxxxxxxxx Xx.
Xxxxxxxx, XX 00000
(currently) Attn: Xxxxxxxxx Xxxxxx
Senior Vice President
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ARTICLE XXIII
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after June 15, 2001.
ARTICLE XXIV
EXECUTION
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
--------------------------------- -------------------------------
Title: Vice President Title: 2nd Vice President
Date: 12/9/02 Date: 12/9/02
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx Attest: /s/ Xxxxxx X. Xxxxxxxx
--------------------------------- -------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxxxxx X. Xxxxxxxx, FSA, MAAA
Senior Vice President Assistant Vice President
Individual Life Product &
Marketing
Date: 10/25/02 Date: 11/7/2002
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SCHEDULE A
SPECIFICATIONS
TYPE OF BUSINESS Individual life insurance issued by the
Ceding Company
REINSURER'S POOL SHARE Reinsurer shall automatically reinsure
of the amount at risk on a policy
reinsured by the Pool.
PLANS OF INSURANCE
POLICY TYPES RIDERS
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Stag Universal Life Other Covered Insured (UL)
Artisan Variable Life Term Rider (on base or other insured)
Protector Variable Life ADB Benefit (not reinsured)
Accumulator Variable Life Deduction Amount Waiver Rider
Waiver of Monthly Deduction
Waiver of Specified Amount
Enhanced No Lapse Guarantee Rider
Estate Tax Repeal Benefit Rider
Level Compensation Endorsement
Terrorism Exclusion Rider
War Exclusion Rider
Disintermediated Endorsement
Children's Life Insurance Rider
Maturity Date Extension
MINIMUM FACE AMOUNT: [Redacted]
MAX FACE AMOUNT: [Redacted]
18
SCHEDULE B
BASIS OF REINSURANCE
LIFE PRODUCTS
[Redacted]
EXCHANGES
Exchanges from one single life plan reinsured under this agreement to a
different single life plan, for the purpose of allowing the policyowner premium
flexibility (UL) or potentially higher investment return (VL), will be reinsured
hereunder as new business at first year reinsurance rates if the new plan has
been fully underwritten and has new contestable and suicide exclusion periods.
Otherwise, the reinsurance rates will be point-in-scale.
RESERVE BASIS
[Redacted]
19
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
1. LIFE REINSURANCE PREMIUM
[Redacted]
2. FLAT EXTRA PREMIUMS
The flat extra premium will be the annual flat extra premium which the Ceding
Company charges the insured on that amount of the insurance reinsured less the
following allowances:
DURATION OF FLAT EXTRA PREMIUM FIRST YEAR RENEWAL YEARS
------------------------------------------------------------------------------------
Less than 5 years [Redacted] [Redacted]
5 years or more
3. PREMIUM TAX
Premium tax will not be reimbursed.
4. RIDERS
Term riders, cost of living riders, and other riders providing additional or
increasing coverage will use the same methods and YRT rates as the base plan.
Waiver of premium rates are attached and are per dollar of annualized amount.
Deduction amount waiver rates (also called "waiver of monthly deductions") are
attached, and the charge for this benefit is a rate times the monthly deduction
amount. Our retention on both types of waivers is proportional to our retention
on the death benefit.
20
EXHIBIT II
SINGLE LIFE RETENTION, BINDING, AND ISSUE LIMITS
(Applicable to Single Life Pool Business -- NOT LS and NOT SST)
Effective 6/15/01
RETENTION LIMITS
[Redacted]
AUTOMATIC BINDING LIMIT (EXCLUDES RETENTION)
[Redacted]
AUTOMATIC ISSUE LIMIT (INCLUDES RETENTION)
[Redacted]
JUMBO LIMIT
[Redacted]
21
EXHIBIT III
PREMIUM RATES
[Redacted]
The rates to be used to calculate premium for automatic issues are attached.
22
2001 Lincoln Re Base Rates Multiclass Products
Male Nonnicotine Preferred
SL01 LNL base rates 08-17-01 LNL reinsurance base rates 2001
Multiclass 10/22/2002
AMENDMENT
to the
Reinsurance Agreements (referred to individually as "Agreement" and
collectively as the "Agreements") listed on the attached Exhibit A
between
Hartford Life and Accident Insurance Company and Hartford Life Insurance Company
and Hartford Life and Annuity Insurance Company all of Simsbury, Connecticut
hereinafter referred to as the "Ceding Company"
and
The Lincoln National Life Insurance Company of Fort Xxxxx, Indiana
hereinafter referred to as the "Reinsurer"
For purposes of this Amendment, it is understood by the parties that any
references to the "Ceding Company" in this Amendment, shall be understood to
mean the Ceding Company, the Ceding Company's specific or abbreviated name, the
Issuing Company, the Issuing Insurer, the Company, the Insuring Company, the
Insurer, the Reinsured or a similar reference in the Agreements. Further, any
references to the "Reinsurer" shall be understood to mean the Lincoln, the
Reinsurer, the Reinsuring Company or a similar reference in the Agreements, and
the Ceding Company and the Reinsurer will collectively be referred to as the
"Parties" and individually referred to as a "Party".
RECITALS
1. The Reinsurer was an accredited reinsurer with the New York State Department
of Insurance (the "New York Accreditation") as of the date the Agreements were
executed.
2. The Reinsurer discontinued its New York Accreditation effective October 1,
2007.
3. The Ceding Company wishes to maintain its credit for reinsurance ceded under
the Agreements in the State of New York.
4. The Reinsurer agrees to provide security to allow the Ceding Company to
maintain its credit for reinsurance ceded under the Agreements in the State of
New York.
In consideration of these facts and the mutual promises and covenants contained
herein, the Parties agree to amend the Agreements to include the following.
1. The Parties intend that credit for reinsurance ceded under this Agreement
shall be allowed the Ceding Company in its statutory financial statements filed
in all states within the United States of America in which the Ceding Company is
licensed, accredited or otherwise authorized to transact business ("Credit").
The Reinsurer represents to the Ceding Company that it is properly licensed or
accredited in all states except the State of New York, and shall notify the
Ceding Company immediately upon any change in or loss of such licensing or
accreditation.
1
2. In order for credit for reinsurance ceded under this Agreement to be allowed
the Ceding Company in its statutory financial statements filed in the state of
New York, the Reinsurer shall establish and maintain security at least equal to
the Security Amount, as defined in Section 5, at its sole expense, on an annual
basis. Such security will be provided in the form of a clean, irrevocable letter
of credit acceptable under the insurance laws and regulations of the State of
New York.
3. The Parties shall use best efforts to ensure that Credit shall remain
available to the Ceding Company throughout the duration of this Agreement.
4. Security Amount means amounts for policy reserves, reserves for claims and
losses incurred (including losses incurred but not reported), loss adjustment
expenses, unearned premiums and reinsurance recoverables on paid and unpaid
losses. The Ceding Company shall calculate the Security Amount in accordance
with the valuation laws, regulations and actuarial guidelines to which the
Ceding Company is subject on each valuation date.
5. The Ceding Company will provide to the Reinsurer an initial statement of the
Security Amount on or before December 20, 2007, and thereafter annual statements
of the Security Amount. Annual statements of Security Amount will be provided to
the Reinsurer no later than 15 days before the end of each year that this
Agreement remains in effect.
6. On or before December 31, 2007, the Reinsurer shall apply for and secure
delivery to the Ceding Company of one or more clean, irrevocable, evergreen and
unconditional letters of credit which meet the applicable laws and regulations
of the State of New York and which are in substantial accord with the sample
letter of credit attached as Exhibit B to this Amendment (the "Letter of
Credit") for reinsurance ceded under this Agreement.
7. Such amount available for draw under the Letter(s) of Credit shall at all
times equal or exceed the Security Amount reported by the Ceding Company in its
most recent Security Amount statement for the reinsurance ceded under this
Agreement. If such statement shows that the Security Amount is greater than the
amount available for draw under the Letter(s) of Credit as of the statement
date, the Reinsurer will provide an amendment to the Letter(s) of Credit by
December 31st following delivery of such statement, increasing the amount
available for draw to the extent necessary. If the Security Amount statement
shows that the Security Amount is less than the amount available for draw, the
Reinsurer may provide an amendment to the Letter(s) of Credit by December 31st
following delivery of such statement releasing any unneeded credit.
8. If, as a result of a change in the relevant laws and regulations in either
the Ceding Company's state of domicile or the State of New York, the Letter(s)
of Credit provided for under this Amendment cease to be a valid form of security
for the Ceding Company to receive credit for reinsurance ceded under this
Agreement, the Reinsurer shall use commercially reasonable efforts to provide a
reinsurance credit instrument satisfying the laws and regulations in the Ceding
Company's state of domicile or the State of New York.
2
9. If, as a result of a change in the relevant laws or regulations in either
the Ceding Company's state of domicile or the State of New York or a change in
legal status by either the Ceding Company or the Reinsurer, a lower amount or
different type of security is needed to maintain the Ceding Company's credit for
reinsurance ceded under this Agreement, the Reinsurer may reduce the amount of
security or change the type of security to meet the requirements. The Parties
will cooperate in good faith to effectuate this provision.
10. In the event at any time the Letter(s) of Credit become unnecessary in
order for the Ceding Company to receive credit for reinsurance ceded under this
Agreement, this Amendment establishing the Letter(s) of Credit shall cease to
apply, and all other terms and conditions of this Agreement shall remain in full
force and effect.
11. Notwithstanding any other provision of this Agreement, the Ceding Company
or any successor by operation of law of the Ceding Company, including without
limitation any liquidator, rehabilitator, receiver or conservator of the Ceding
Company, may draw upon such Letters of Credit at any time for any of the
following purposes, with such amounts drawn to be applied without diminution
because of insolvency of the Ceding Company or the Reinsurer:
(a) To reimburse the Ceding Company for the Reinsurer's share of
premiums returned to the owners of reinsured policies due to
cancellation of such policies;
(b) To reimburse the Ceding Company for the Reinsurer's share of
surrenders and benefits or losses paid by the Ceding Company under
the terms and provisions of the reinsured policies;
(c) To fund an account with the Ceding Company for an amount at least
equal to the deduction, for reinsurance ceded to the Reinsurer, from
the Ceding Company's liabilities for the reinsured policies under
this Agreement. Such amount shall include, but not be limited to,
amounts for reinsured policy reserves, reserves for claims and
losses incurred (including losses incurred but not reported), loss
adjustment expenses (if applicable under this Agreement) and
unearned premium reserves; and
(d) To pay any other amounts that the Ceding Company claims are due under
of this Agreement.
12. The Ceding Company shall return to the Reinsurer any amounts drawn on such
Letters of Credit which are in excess of the actual amounts required for
purposes of subparagraphs 11(a), 11(b), and 11(c) above. The Ceding Company
shall return to the Reinsurer any amounts drawn on such Letters of Credit for
the purpose of subparagraph 11(d) above that are subsequently determined not to
be due.
13. The Ceding Company shall credit the Reinsurer interest quarterly, at the
Prime Rate, on amounts held pursuant to subparagraph 11(c) above. For these
purposes, the Prime Rate shall mean the rate (or average of the rates, if more
than one (1) rate) published in The Wall Street Journal as of the last day of
the applicable period for which the calculation is being made.
3
14. Payment to the Ceding Company by the bank issuing the Letters of Credit
shall constitute a payment by the Reinsurer pursuant to this Agreement and shall
discharge the Reinsurer of the obligation which gave rise to the draw on the
Letters of Credit, provided however, the Reinsurer may later contest whether it
had failed to reimburse or pay the Ceding Company as required by this Agreement.
15. If the Ceding Company makes demand of payment on the Letters of Credit, the
Ceding Company shall provide a copy of the written request to the Reinsurer.
16. For each year in which this Agreement is in effect, the Reinsurer shall
provide the Ceding Company a report meeting the requirements of section 125.5 of
New York Regulation 20 and any other regulations or statutes in the State of New
York pertaining to credit taken by a ceding insurer for reinsurance ceded to an
unauthorized reinsurer. Such report shall be (a) in writing; (b) signed by an
officer of the Reinsurer; and (c) provided to the Ceding Company no later than
February 15 following the calendar year for which the Ceding Company's annual
statutory financial statement is being filed. Further, the Reinsurer represents
that no portion of the statutory reserves held by the Reinsurer for the Ceding
Company's statutory reserve credit are ceded to any retrocessionaire. The
Reinsurer agrees not to retrocede any statutory reserves held by it for the
Ceding Company's statutory reserve credit without the prior written approval of
the Ceding Company.
17. Each Party to this Agreement agrees to honor the terms set forth herein as
if the Agreement were a separate agreement between the Reinsurer and each
individually named Ceding Company. Balances payable or recoverable by each
individually named Ceding Company shall not serve to offset any balances payable
or recoverable to or from any other Ceding Company to this Agreement.
18. Notwithstanding anything in this Agreement to the contrary, the Parties
acknowledge and agree that Hartford Life and Annuity Insurance Company is
neither licensed nor accredited in the State of New York, and no security is
being established for it pursuant to Section 2, above.
The provisions of this Amendment shall be subject to all terms and conditions of
the Agreements which do not conflict with the terms hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
in duplicate on the dates shown below.
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
By: /s/ Xxxxxx X. xxxxxxxx Attest: /s/ Xxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxx X. Xxxxxx
Title: Vice President Title: Assistant Vice President
Date: December 19, 2007 Date: December 19, 2007
4
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxx X. Xxxxxx
Title: Vice President Title: Assistant Vice President
Date: December 19, 2007 Date: December 19, 2007
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxx X. Xxxxxx
Title: Vice President Title: Assistant Vice President
Date: December 19, 2007 Date: December 19, 2007
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By: Attest:
Name: Name:
Title: Title:
Date: Date:
5
HARTFORD LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxx X. Xxxxxx
Title: Vice President Title: Assistant Vice President
Date: December 19, 2007 Date: December 19, 2007
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxxx X. Xxxxxx
Title: Vice President Title: Assistant Vice President
Date: December 19, 2007 Date: December 19, 2007
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: [ILLEGIBLE] Name: [ILLEGIBLE]
Title: Assistant Vice President Title: Vice President
Date: 12/20/07 Date: 12/20/2007
5
EXHIBIT A
LISTING OF
REINSURANCE AGREEMENTS
REINSURER'S FORMER LNL
REFERENCE NO. REFERENCE NO. AGREEMENT TYPE EFFECTIVE DATE
--------------------------------------------------------------------------------------
N/A N/A Life YRT 1/1/1995
N/A N/A Life YRT 10/1/1996
N/A N/A CO/I 7/1/1997
3183101 202/46 Life YRT 10/15/1999
N/A N/A Life YRT 12/1/2000
N/A N/A Life YRT 6/15/2001
N/A N/A Life YRT 6/15/2001
6
EXHIBIT B
SAMPLE LETTER OF CREDIT
FOR INTERNAL IDENTIFICATION PURPOSES ONLY
Does Not Affect Terms of Letter of Credit or
Banks Obligation Thereunder
Our No. Other
Accountholder/Applicant
(Reinsurer)
Beneficiary's State of Domicile
Irrevocable Issue Date:
Letter of Credit No.
To Beneficiary: (Name)
(Address)
We have established this clean, irrevocable and unconditional Letter of Credit
in your favor as beneficiary for drawings up to U.S. $ effective
immediately. This Letter of Credit is issued, presentable and payable at our
office at (issuing bank address) and expires with our close of business
on .
The term Beneficiary includes any successor by operation of law of the named
Beneficiary including, without limitation, any liquidator, rehabilitator,
receiver or conservator.
We hereby undertake to promptly honor your sight draft(s) drawn on us,
indicating our Credit Number , for all or any part of this Credit
upon presentation of your draft drawn on us at our office specified in paragraph
one on or before the expiration date hereof or any automatically extended expiry
date.
Except as expressly stated herein, our undertaking is not subject to any
agreement, requirement or qualification. The obligation of (issuing bank) under
this Letter of Credit is the individual obligation of (issuing bank) and is in
no way contingent upon reimbursement with respect thereto.
This Letter of Credit is deemed to be automatically extended without amendment
for one year from the expiration date or any future expiration date, unless
thirty days prior to such expiration date, we notify you by registered or
certified mail that this Letter of Credit will not be renewed for any such
additional period.
7
This Letter of Credit is subject to and governed by the Laws of the State of New
York and the 1993 Revision of the Uniform Customs and Practice for Documentary
Credits of the International Chamber of Commerce (Publication No. 500) and, in
the event of any conflict, the Laws of the State of New York will control. If
this credit expires during an interruption of business as described in Article
17 of said Publication 500, the bank hereby specifically agrees to effect
payment if this Credit is drawn against within 30 days after the resumption of
business.
Very truly yours,
8
AMENDMENT 1
This is an amendment to the Automatic Renewable Term
Reinsurance Agreement
between Hartford Life and Accident Insurance Company, Hartford Life Insurance
Company, and Hartford Life and Annuity Insurance Company (collectively referred
to as Ceding Company) and The Lincoln National Life Insurance Company (referred
to as Reinsurer), dated June 15, 2001. The parties agree to the following:
Effective June 1, 2002, the reinsurance rates per thousand for Protector
Variable Life and Accumulator Variable Life are replaced by the ALB annual
premium rates attached for both new business and in force policies. These
ALB annual premium rates replace the ALB annual premium rates for Protector
Variable Life and Accumulator Variable Life attached to Exhibit I.
In all other respects, said Agreement shall remain unchanged.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title: Vice President Title: 2nd Vice President
Date: 12/9/02 Date: 12/9/02
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title: [ILLEGIBLE] Title: Assistant Vice President
Date: 10/25/02 Date: 11/7/2002
2001 LINCOLN RE BASE RATES MULTICLASS PRODUCTS
REVISED LINCOLN RE REINSURANCE BASE RATES FOR
ACCUMULATOR AND PROTECTOR FOR ENHANCED STANDARD MALE
NONNICOTINE PREFERRED
[Redacted] 10/18/2002
1
AUTOMATIC YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
between
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
and
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
FORT XXXXX, INDIANA
Effective: October 15, 1999
ARTICLES
I. Parties to the Agreement 2
II. Reinsurance Coverage 2
III. Liability 4
IV. Reinsurance Premiums 5
V. Oversights 7
VI. Conversions 7
VII. Changes, Reductions and Terminations 7
VIII. Increase in Retention 9
IX. Reinstatement 10
X. Expenses 10
XI. Claims 10
XII. Extra-Contractual Damages 13
XIII. Inspection of Records 13
XIV. DAC Tax - Section 1.848-2 (g)(8) Election 13
XV. Insolvency 14
XVI. Offset 15
XVII. Arbitration 15
XVIII. Termination 16
XIX. Entire Agreement and Amendments 17
XX. Effective Date 17
XXI. Execution 18
SCHEDULES
A. Specifications
B. Basis of Reinsurance
EXHIBITS
I. Reinsurance Premiums
II. Retention, Binding, and Issue Limits
AMENDMENTS
Number 1
Number 2
FOREIGN NATIONAL EXHIBITS
I. Underwriting Guidelines for Foreign National Business
II. Foreign National Loadings
TABLE TWO TO STANDARD PROGRAM
I. Eligibility Requirements
All Schedules and Exhibits attached will be considered part of this
Reinsurance
Agreement.
1
ARTICLE I
PARTIES TO THE AGREEMENT
This Agreement is between three Hartford Life Companies, Hartford Life Insurance
Company, Hartford Life and Accident Insurance Company, and Hartford Life and
Annuity Insurance Company (collectively referred to as the Ceding Company) and
The Lincoln National Life Insurance Company (referred to as the Reinsurer). The
Reinsurer agrees that the terms and conditions of this Agreement shall apply to
each of the Hartford Life Companies individually, unless otherwise set forth
herein.
ARTICLE II
REINSURANCE COVERAGE
Reinsurance under this Agreement will apply to insurance issued by Ceding
Company on the Plans of Insurance shown in Schedule A. Such Plans of Insurance
shall be reinsured with the Reinsurer on an automatic basis, subject to the
requirements set forth in Section A below or on a facultative basis, subject to
the requirements set forth in Section B below or on a facultative obligatory
basis, subject to the requirements set forth in Section C below. The
specifications for all reinsurance under this Agreement are provided in Schedule
A.
A. Requirements for Automatic Reinsurance
For risks which meet the requirements for automatic reinsurance as set forth
below, Reinsurer will participate in a reinsurance pool whereby Reinsurer will
automatically reinsure a portion of the insurance risks as indicated in Schedule
A. The requirements for automatic reinsurance are as follows:
1. The individual must be a resident of the United States or Canada at the time
of application.
2. The individual risk must be underwritten according to the Ceding Company's
standard underwriting practices and guidelines. Any risk falling into the
category of special underwriting programs will be excluded from this Agreement
unless previously agreed to by the Reinsurer via a written amendment.
3. Any risk offered on a facultative basis by the Ceding Company to the
Reinsurer or any other company will not qualify for automatic reinsurance under
this Agreement for the same risk and same life.
4. The maximum issue age on any risk will be age 90.
5. The mortality rating on each individual risk
2
B. Requirements for Facultative Reinsurance
1. If the requirements for automatic reinsurance are met, but the Ceding
Company prefers to apply for facultative reinsurance with the Reinsurer, or if
the requirements for automatic reinsurance are not met and the Ceding Company
applies for facultative reinsurance with the Reinsurer, then the Ceding Company
must submit to the Reinsurer all the papers relating to the insurability of the
individual risk for facultative reinsurance.
2. For applications for facultative reinsurance, Ceding Company will send
copies of all of the papers relating to the insurability of the individual risk
to the Reinsurer. After the Reinsurer has examined the request, the Reinsurer
will promptly notify the Ceding Company of the underwriting offer subject to
additional requirements or the final underwriting offer. The final underwriting
offer on the individual risk will automatically terminate upon the earlier of
the withdrawal of the application or 120 days from the date of the final offer,
unless accepted earlier.
3. Notwithstanding the above, if the requirements for automatic reinsurance are
met except that the face amount of insurance applied for is greater than the
Automatic Issue Limit, but does not exceed the Auto Process Limit, then the
Ceding Company will submit to the Lead Reinsurer, (as designated in Schedule A),
all papers relating to the insurability of the individual risk. The Lead
Reinsurer shall review the papers to determine if the Pool should reinsure the
risk, and, if so, on what basis. The Lead Reinsurer shall provide Ceding Company
with a response within 24 hours of receipt of the papers. Approval of the Lead
Reinsurer shall be binding on all other Pool members. This process shall be
known as Automatic Processing and subject to the limitations in Exhibit II.
3
C. Requirement for Facultative Obligatory Reinsurance
The Reinsurer agrees to a facultative obligatory arrangement whereby the Ceding
Company may cede a risk to the Reinsurer and the Reinsurer agrees to accept the
risk using the Ceding Company's underwriting evaluation, subject to the
following conditions:
1. The requirements for automatic reinsurance specified in Article II must be
met except that the total amount of insurance issued and applied for in all
companies on each risk has exceeded the jumbo limits set forth in Exhibit II.
2. The arrangement is available on all policy forms covered under this
Reinsurance Agreement except for term life insurance products.
3. The ceded risk is subject to the Facultative Obligatory Automatic Binding
Limits as stated in Exhibit II.
4. The ceded risk is subject to the Facultative Obligatory Automatic Issue
Limit is as stated in Exhibit II.
5. The Reinsurer provides the minimum facultative obligatory capacity as stated
in Schedule A. However, to the extent that Reinsurer has already filled its
available capacity on the risk, the Reinsurer may reduce the provided capacity
by notifying the Ceding Company of the reduced capacity. Such notification must
occur within 2 business days of the Ceding Company's request for facultative
obligatory capacity on that risk.
D. Basis of Reinsurance
Reinsurance under this Agreement will be on the basis as stated in Schedule B.
E. Policy Forms.
When requested, the Ceding Company will furnish the Reinsurer with a copy of
each policy, rider, rate book, and applicable sales or marketing material that
applies to the life insurance reinsured hereunder.
ARTICLE III
LIABILITY
A. The Reinsurer's liability for automatic reinsurance coverage will begin
simultaneously with the Ceding Company's liability except for those risks which
qualify for automatic reinsurance but are submitted on a facultative basis.
4
B. The Reinsurer's liability for facultative reinsurance coverage on the
individual risk will begin simultaneously with the Ceding Company's liability
once the Reinsurer has accepted the application for facultative reinsurance and
the Ceding Company has accepted the offer.
C. In no event shall the reinsurance be in force and binding if the issuance
and delivery of such insurance constituted the doing of business in a
jurisdiction in which the Ceding Company was not properly licensed.
D. The Reinsurer's liability for reinsurance coverage on each risk will
terminate when the Ceding Company's liability terminates.
E. The liability of each pool member shall be separate and not joint with the
other pool members.
F. Payment of reinsurance premiums is a condition precedent to reinsurance
coverage.
G. The Reinsurer shall establish reserves on Reinsurer's portion of the policy
on the reserve basis specified in Schedule B.
ARTICLE IV
REINSURANCE PREMIUMS
A. Computation.
Premiums for reinsurance under this Agreement will be computed as described in
Exhibit I.
B. Premium Accounting.
1. Payment of Reinsurance Premiums.
For automatic and facultative reinsurance, following the close of each calendar
month, the Ceding Company will send the Reinsurer a statement and a listing of
new business, changes and terminations.
If a net reinsurance premium balance is payable to the Reinsurer, the Ceding
Company will forward this balance within (60) sixty days after the close of each
month.
If a net reinsurance premium balance is payable to the Ceding Company, the
balance due will be subtracted from the reinsurance premium payable by Ceding
Company for the current month. The Reinsurer shall pay any remaining balance due
the Ceding Company sixty days after the Ceding
5
Company submits the statement.
2. Non-Payment of Premium
If reinsurance premiums are delinquent, the Reinsurer has the right to terminate
the reinsurance risks on those policies listed on the delinquent monthly
statement by giving the Ceding Company ninety days' advance written notice. If
the delinquent premiums have not been paid as of the close of the ninety-day
period, the Reinsurer's liability will terminate for the risks described in the
delinquency notice.
Regardless of the termination, the Ceding Company will continue to be liable to
the Reinsurer for all unpaid reinsurance premiums earned.
3. Reinstatement
The Ceding Company may reinstate the risks terminated due to non-payment of
reinsurance premium within sixty days after the effective date of termination by
paying the unpaid reinsurance premiums for the risks in force prior to the
termination. However, the Reinsurer will not be liable for any claim incurred
between the date of termination and reinstatement. The effective date of
reinstatement will be the date the required back premiums are received.
4. Currency
The reinsurance premiums and benefits payable under this Agreement will be
payable in the lawful money of the United States.
5. Detailed Listing
The Ceding Company will send the Reinsurer a detailed listing of all reinsurance
in force as of the close of the immediately preceding calendar year.
6. Guaranteed Rates
Although the Reinsurer anticipates continuing to accept reinsurance premiums at
the current level, the Reinsurer reserves the right to increase the reinsurance
premiums but only when the Ceding Company increases the cost of insurance rates
to the policy owner. The increase to the reinsurance premium shall be no more
than proportional to the increase to the policy owner's cost of insurance rates.
6
ARTICLE V
OVERSIGHTS
If there is an unintentional oversight or misunderstanding in the administration
of this Agreement by Ceding Company or Reinsurer, it can be corrected provided
the correction takes place within a reasonable time after the oversight or
misunderstanding is first discovered. Both Ceding Company and the Reinsurer will
be restored to the position they would have occupied had the oversight or
misunderstanding not occurred.
ARTICLE VI
CONVERSIONS
Conversions from existing term plans of insurance reinsured under this Agreement
will be reinsured using the YRT premiums attached as Exhibit I on a
point-in-scale basis up to the original face amount. The converted policy will
be reinsured with the Reinsurer in the same proportion as was determined for the
original term policy.
ARTICLE VII
CHANGES, REDUCTIONS AND TERMINATIONS
A. Replacement or Change
If there is a contractual change or non-contractual replacement of the insurance
reinsured under this Agreement where full underwriting evidence according to the
Ceding Company's regular underwriting rules is not required, the insurance may
continue to be reinsured with the Reinsurer provided it meets the minimum
reinsurance cession amount stated in Schedule A. If a non-contractual change is
requested on a facultatively reinsured policy, the Reinsurer must consent to the
change.
B. Increases or Decreases
1. If the policy face amount of a risk reinsured automatically under this
Agreement increases and:
a. The increase is subject to new underwriting evidence, then the
provisions of Article II, Section A, shall apply to the increase in
reinsurance.
7
b. The increase is not subject to new underwriting evidence, then
Reinsurer will accept automatically the increase in reinsurance but
not to exceed the automatic binding limit.
2. If the policy face amount increases, the Ceding Company's retention will be
filled first, then any remaining risk of the increase will be ceded to the
Reinsurer as of the effective date of the increase. If the policy face amount is
reduced, the reinsurance will be reduced first, thereby maintaining the Ceding
Company's retention. Reinsurer will refund to Ceding Company all unearned
reinsurance premiums not including policy fees, less applicable allowances,
arising from reductions, terminations and changes as described in this Article.
3. In the event of a reduction in the face amount of a policy which was ceded
facultatively, the Reinsurer's percentage of the reduced face amount should be
the same percentage of the initial reinsurance ceded.
4. Increases in face amount of policies reinsured on a facultative basis, will
be submitted to the Reinsurer for acceptance.
C. Reduction in Retained Coverage
If any portion of the aggregate insurance retained by Ceding Company on an
individual life reduces or terminates any reinsurance under this Agreement based
on the same life may also be reduced or terminated. Ceding Company will reduce
the reinsurance by applying the retention limits that were in effect at the time
each policy was issued. Ceding Company will not be required to retain an amount
in excess of its regular retention limit for the age, mortality rating and risk
classification at the time of issue for any policy on which reinsurance is being
reduced.
The reinsurance to be terminated or reduced will be determined by chronological
order in which the reinsurance was first reinsured, thereby reducing or
terminating the oldest risks first.
D. Multiple Reinsurers
If a risk is shared by more than one Reinsurer, Reinsurer's percentage of any
increased or reduced reinsurance will be the same as its initial percentage of
the reinsurance for that risk.
E. Termination
If the policy for a risk reinsured under this Agreement is terminated, the
reinsurance for the risk involved will be terminated on the effective date of
termination.
8
F. Facultative
On facultative reinsurance, if Ceding Company wishes to reduce the mortality
rating, this reduction will be subject to and reinsured under the facultative
provisions of this Agreement.
ARTICLE VIII
INCREASE IN RETENTION
A. If the Ceding Company should increase the retention limits as listed in
Exhibit II, prompt written notice of the increase must be given to the
Reinsurer.
B. In the event of an increase in retention, the Ceding Company will have the
option of recapturing the reinsurance under this Agreement when the retention
limit increases. The Ceding Company may exercise its option to recapture by
giving written notice to the Reinsurer within ninety days after the effective
date of the increase.
C. If the Ceding Company exercises its option to recapture, then
1. The Ceding Company must reduce the reinsurance on each individual life on
which the Ceding Company retained the maximum retention limit for the age and
mortality rating that was in effect at the time the reinsurance was ceded to the
Reinsurer.
2. No recapture will be made to reinsurance on an individual life if (a) the
Ceding Company retained a special retention limit less than the maximum
retention limit in effect at the time the reinsurance was ceded to the
Reinsurer, or if (b) the Ceding Company did not retain insurance on the risk.
3. The Ceding Company must increase its total amount of insurance on the risk
up to the new retention limit by reducing the reinsurance. If a risk is shared
by more than one Reinsurer, the Reinsurer's percentage of the reduced
reinsurance will be the same as the initial percentage on the individual risk.
4. Upon increasing the retention limit, the reduction in reinsurance will
become effective on the next annual premium anniversary of those policies that
have been inforce for at least ten (10) years.
9
ARTICLE IX
REINSTATEMENT
If an insurance policy lapses for nonpayment of premium and is reinstated under
the Ceding Company's terms and rules, the Reinsurer will reinstate the
reinsurance as follows:
A. Automatic Cases:
The Ceding Company must pay the Reinsurer all back reinsurance premiums in the
same manner as the Ceding Company received insurance premiums under the policy.
When the Ceding Company reinstates the policy, the reinsurance will be
automatically reinstated.
B. Facultative Cases:
If the Ceding Company requires reinstatement evidence of insurability, the
Ceding Company will submit it to the Reinsurer for approval. In such cases, the
Reinsurer's approval is required for the reinsurance to be reinstated. Upon the
Reinsurer's approval, the Ceding Company must pay the Reinsurer all back
reinsurance premiums in the same manner as the Ceding Company received insurance
premium under the policy.
ARTICLE X
EXPENSES
The Ceding Company must pay the expense of all medical examinations, inspection
fees and other charges in connection with the issuance of the insurance.
ARTICLE XI
CLAIMS
A. Liability
If the Ceding Company is liable for insurance benefits on a policy reinsured
under this Agreement, the Reinsurer shall be liable for its portion of the
reinsurance on that policy, as described in Schedule A. All reinsurance claim
settlements will be subject to the terms and conditions of the particular
contract under which the Ceding Company is liable.
10
B. Notification
When the Ceding Company is advised of a claim, the Reinsurer must be notified
promptly.
C. Claim Payment
1. Automatic Reinsurance on a Risk
If a claim is made on a risk reinsured automatically under this Agreement and is
not contested by the Ceding Company, Reinsurer will abide by the issue as the
Ceding Company settles it. Copies of proofs or other written matters relating to
any claim reimbursements under this Agreement shall be furnished to the
Reinsurer upon written request. The Ceding Company will receive payment of the
reinsurance proceeds from the Reinsurer when the Ceding Company makes the
settlement of the policy proceeds and delivers a copy of the proof of death,
check copy or proof of payment and the claimant's statement to the Reinsurer.
2. Facultative Reinsurance on a Risk
If a claim is made on a risk reinsured facultatively under this Agreement, the
Ceding Company shall submit to Reinsurer all relevant and/or requested documents
and papers related to the claim along with Ceding Company's recommendation.
Ceding Company shall then wait five days from the date of mailing during which
time Reinsurer shall have the opportunity to advise Ceding Company of its
consent or disagreement with the recommendation. In the event Reinsurer does not
contact Ceding Company within the five-day period, Reinsurer shall be deemed to
have approved the recommendation and Ceding Company shall be authorized to act
accordingly. The Ceding Company will receive payment of the reinsurance proceeds
from Reinsurer when Ceding Company makes the settlement of the policy proceeds
and delivers proof of payment to the Reinsurer.
3. Payment of Reinsurance Proceeds
Payment of life reinsurance proceeds will be made in a single sum regardless of
the Ceding Company's mode of settlement with the payee.
D. Contested Claims
The Ceding Company must promptly notify the Reinsurer of any intent to contest a
claim reinsured under this Agreement or to assert defenses. If the Ceding
Company's contest of such claim results in the increase or reduction of
liability, the Reinsurer will share in this increase or reduction. The
Reinsurer's share of
11
the increase or decrease shall be proportional to their share of the net amount
at risk on the date of death of the insured.
If the Reinsurer should decline to participate in the contest or assertion of
defenses, the Reinsurer will then release all of the liability by paying the
Ceding Company the full amount of reinsurance and not sharing in any subsequent
increase or reduction in liability.
E. Misstatement of Age or Sex
If the amount of insurance provided by the policy or policies reinsured under
this Agreement is increased or reduced because of misstatement of age or sex
established after the death of the insured, the Reinsurer will share with the
Ceding Company in this increase or reduction.
F. Routine Expenses
The Ceding Company will pay the routine expenses incurred in connection with
settling claims: These expenses may include compensation of agent and employees
and the cost of routine investigations such as inspection reports.
G. Non-Routine Expenses
The Reinsurer will share with the Ceding Company all expenses that are not
routine. Expenses that are not routine are those directly incurred in connection
with the contest or the possibility of a contest of a claim or the assertion of
defenses, including legal expenses. The expenses will be shared in proportion to
the net amount at risk for the Ceding Company and Reinsurer. However, if the
Reinsurer has released the liability under Section D of this Article, the
Reinsurer will not share in any expenses incurred after the date of the
Reinsurer's release.
X. Xxxxxxxxxxx Period
If, during the contestable period, Ceding Company is notified of the death of
the insured, the Ceding Company will investigate the case.
I. Return of Premium for Misrepresentations and Suicides
If a misrepresentation or misstatement on an application or a death of an
insured risk by suicide results in the Ceding Company returning the policy
premiums to the policy owner rather than paying the policy benefits, the
Reinsurer will refund all of the reinsurance premiums it received on that policy
to the Ceding Company. This refund given by the Reinsurer will be in lieu of all
other reinsurance benefits payable on that policy under this Agreement.
12
ARTICLE XII
EXTRA-CONTRACTUAL DAMAGES
In no event will the Reinsurer have any liability for any extra-contractual
damages which are awarded against the Ceding Company as a result of acts,
omissions or course of conduct committed by the Ceding Company in connection
with the insurance reinsured under this Agreement.
The Reinsurer does recognize that circumstances may arise under which the
Reinsurer, in equity, should share, to the extent permitted by law, in paying
certain assessed damages. Such circumstances are difficult to define in advance,
but involve those situations in which the Reinsurer was an active party in the
act, omission or course of conduct which ultimately results in the assessment of
such damages. The extent of such sharing is dependent on good faith assessment
of culpability in each case, but all factors being equal, the division of any
such assessment would be in the proportion of total risk accepted by each party
for the plan of insurance involved.
ARTICLE XIII
INSPECTION OF RECORDS
Each party will have the right, at any reasonable time and upon reasonable
notice, to inspect the other party's books and documents that relate to
reinsurance under this Agreement.
ARTICLE XIV
DAC TAX
SECTION 1.848-2(g)(8) ELECTION
A. The Reinsurer and the Ceding Company 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 1993 and for all subsequent taxable years for
which this Agreement remains in effect.
B. The terms used in this Article are defined by reference to Regulation
Section 1.848-2 in effect December 1992.
C. The party with net positive consideration for this Agreement for each
taxable year will capitalize specified policy acquisition expenses with respect
to this Agreement without regard to the general deduction limitation of section
848(c)(1).
13
D. 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.
E. The Ceding Company will submit to the Reinsurer by May 1st of each year a
schedule of the calculation of the net consideration for the preceding calendar
year. This schedule of calculations will be accompanied by a statement signed by
an officer of the Ceding Company stating that such net consideration will be
reported in the tax return for the preceding calendar year.
F. The Reinsurer may contest such calculation by providing an alternative
calculation to the Ceding Company in writing within 30 days of receipt of Ceding
Company's calculation. If the Reinsurer does not notify the Ceding Company,
Reinsurer will report the net consideration as determined by the Ceding Company
in the tax return for the preceding calendar year.
G. If the Reinsurer contests the Ceding Company's calculation of the net
consideration, both parties will act in good faith to reach an agreement as to
the correct amount within thirty (30) days of the date the Reinsurer submits
their alternative calculation. If both parties reach agreement on an amount of
net consideration, both parties shall report such amount in their respective tax
returns for the previous calendar year.
ARTICLE XV
INSOLVENCY
A. Insolvency of Reinsurer
If the Reinsurer becomes insolvent as determined by the Department of Insurance
responsible for such determination, amounts due the Reinsurer will be paid net
of the terms of this Agreement and directly to the liquidator, receiver, or
statutory successor without decrease. The Ceding Company may recapture all
reinsurance ceded under this Agreement without charge or penalty as of the date
Reinsurer fails to meet its obligations under this Agreement.
B. Insolvency of Ceding Company
If Hartford Life Insurance Company, Hartford Life and Accident Insurance Company
or Hartford Life and Annuity Insurance Company should become insolvent, all
reinsurance under this Agreement covering risks ceded by that particular company
will be payable by Reinsurer directly to that Company's liquidator, receiver or
statutory successor, on the basis of the liability of that Company under the
policy or policies reinsured and without diminution because of the insolvency of
the Company. However, in the event of such insolvency, the liquidator, receiver
or statutory successor will give written notice of a pending
14
claim against Ceding Company on the reinsured policy. It will do so within a
reasonable time after the claim is filed in the insolvency proceedings. During
the pendency of such a claim, Reinsurer may investigate the claim and may, at
its own expense, interpose any defense or defenses which it may deem available
to the insolvent Company, its liquidator, receiver or statutory successor, in
the proceedings where the claim is to be adjudicated.
The expense thus incurred by Xxxxxxxxx will be chargeable against the insolvent
Company, subject to court approval, as part of the expense of liquidation to the
extent of a proportionate share of the benefit which may accrue to the insolvent
Company solely as a result of the defense undertaken by Reinsurer.
Where two or more Reinsurers are involved in the same claim and a majority in
interest elect to interpose defense to the claim, the expense will be
apportioned in accord with the terms of the reinsurance agreement as though the
expense had been incurred by the insolvent Company.
It is agreed that the insolvency of any one of the Hartford Life Companies shall
not affect this Agreement as it applies to the remaining solvent companies.
ARTICLE XVI
OFFSET
Any debts or credits, matured or unmatured, liquidated or unliquidated,
regardless of when they arose or were incurred, in favor of or against either
the Ceding Company or the Reinsurer with respect to this Agreement or with
respect to any other claim of one party against the other are deemed mutual
debts or credits, as the case may be, and shall be set off, and only the balance
shall be allowed or paid. In the event the Ceding Company becomes insolvent,
offsets shall be allowed in accordance with applicable law.
ARTICLE XVII
ARBITRATION
Any disagreement, controversy, or claim arising out of or relating to this
Agreement between the Reinsurer and any one of the Hartford Life Companies will
be settled by arbitration. There will be three arbitrators chosen among current
or retired officers of life insurance companies other than parties or their
affiliates. Each party to the dispute will appoint one of the arbitrators and
these two arbitrators will select the third arbitrator. In the event that either
party should fail to choose an arbitrator within 30 days following a written
request by the other party to do so, the requesting party may choose two
arbitrators who shall in turn choose a third arbitrator before entering upon
arbitration. If the two arbitrators fail to agree upon the selection of a third
arbitrator within 30 days following their appointment, each arbitrator shall
nominate three candidates within 10
15
days thereafter, two of whom the other shall decline, and the decision shall be
made by drawing lots.
Arbitration will be conducted in accordance with the Commercial Arbitration
Rules of the American Arbitration Association that will be in effect on the date
of delivery of demand for arbitration. The arbitrators will base their decision
on the terms and conditions of this Agreement plus, as necessary, on the customs
and practices of the insurance and reinsurance industry rather than solely on a
strict interpretation of the applicable law. The site of any arbitration will be
determined by a majority vote of the arbitrators. All expenses and fees of the
arbitration will be borne equally by the parties unless otherwise decreed by the
arbitrators.
The award agreed to by a majority of the arbitrators will be final and binding
and there will be no appeal from their decision. Judgment may be entered upon it
in any court having jurisdiction.
ARTICLE XVIII
TERMINATION
A. Each Hartford Life Insurance Company and the Reinsurer may terminate this
Agreement as it applies to the new business of each by giving (90) ninety days'
written notice of termination. The day the notice is deposited in the mail
addressed to the Home Office, or to an Officer of each party, will be the first
day of the (90) ninety-day period.
B. During the (90) ninety-day period, this Agreement will continue to be in
force between the terminating parties.
C. After termination, the terminating parties shall remain liable under the
terms of this Agreement for all automatic reinsurance that becomes effective
prior to termination of this Agreement. After termination the terminating
parties shall be liable for all automatic and facultative reinsurance which has
an application date on or before the effective date of the termination.
D. Termination by one or two of the Hartford Life Companies shall not affect
this Agreement as it relates to the non-terminating Hartford Life Company (ies).
16
ARTICLE XIX
ENTIRE AGREEMENT AND AMENDMENT
A. Entire Contract
This Agreement with any attached Schedules and Exhibits, shall constitute the
entire agreement between the parties with respect to the business being
reinsured hereunder and there are no understandings between the parties other
than as expressed herein.
B. Modifications
Any modification or change to the provisions of this Agreement shall be null and
void unless set forth in a written amendment to the Agreement which is signed by
all parties to the amendment.
ARTICLE XX
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after October 15, 1999.
17
ARTICLE XXI
EXECUTION
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY FORT XXXXX, INDIANA
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
---------------------------- ----------------------------
Title [ILLEGIBLE] Vice President Title ASSISTANT SECRETARY
Date 8-10-00 Date 8-9-00
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxxxxx X. Xxxxxxxx
---------------------------- ----------------------------
Xxxxxxx X. Xxxxx, FSA, XXX Xxxxxx X. Xxxxxxxx, FSA,
Vice President Individual MAAA Director, Individual
Life Product & Marketing Life Pricing
Date 4/27/2000 Date 4/27/2000
18
SCHEDULE A
SPECIFICATIONS
TYPE OF BUSINESS Individual life insurance issued by the Ceding Company
REINSURANCE POOL SHARE
[Redacted]
FACULTATIVE OBLIGATORY
PLANS OF INSURANCE
POLICY TYPES RIDERS
--------------------------------------------------------------------------------------------
Interest Sensitive Whole Life Stag Universal Other Covered Insured (UL)
Life
ART, 5, and 10 Yr Term (NY) Term Rider (on base or other insured)
Stag Variable Life Additional Insurance Benefit Rider (ISWL)
Artisan Variable Life Increase in Coverage Option Rider (VL)
Protector Variable Life Cost of Living Rider (UL)
One Year Term Waiver of Premium
Accumulator Variable Life Life Solutions I UL ADB Benefit (not reinsured)
Life Solutions II UL Deduction Amount Waiver Rider
LBS I UL Waiver of Monthly Deduction
Universal Life V Additional Purchase Option Rider
20 Year Term
Single Premium Variable Life
(fully underwritten only)
MINIMUM REINSURANCE [Redacted]
CESSION
LEAD REINSURER [Redacted]
SCHEDULE B
BASIS OF REINSURANCE
LIFE PRODUCTS
Life reinsurance will be on the yearly renewable term (YRT) basis for the amount
at risk on the portion of the policy reinsured by Reinsurer. The amount at risk
on a policy shall be the death benefit of the policy less the amount retained by
the Ceding Company, less the cash value under the policy. The basis for
determining Reinsurer's liability shall be the amount at risk used for
computation of the reinsurance premium.
EXCHANGES
Exchanges from one single life plan reinsured under this agreement to a
different single life plan, for the purpose of allowing the policyowner premium
flexibility (UL) or potentially higher investment return (VL), will be reinsured
hereunder as new business at first year reinsurance rates if the new plan has
been fully underwritten and has new contestable and suicide exclusion periods.
Otherwise, the reinsurance rates will be point-in-scale.
RESERVE BASIS
[Redacted]
EXHIBIT I
REINSURANCE PREMIUMS
1. LIFE REINSURANCE PREMIUM
[Redacted]
2. FLAT EXTRA PREMIUMS
[Redacted]
4. RIDERS
Term riders, cost of living riders, and other riders providing additional or
increasing coverage will use the same methods and YRT rates as the base plan.
Waiver of premium rates are attached and are per dollar of annualized amount.
Deduction amount waiver rates (also called "waiver of monthly deductions") are
attached, and the charge for this benefit is a rate times the monthly deduction
amount. Our retention on both types of waivers is proportional to our retention
on the death benefit.
EXHIBIT II
SINGLE LIFE RETENTION, BINDING, AND ISSUE LIMITS
Effective 10/15/99
[Redacted]
RETENTION LIMIT
Issue Age Standard -- Table F Table G -- Table P
AUTOMATIC BINDING LIMIT (EXCLUDES RETENTION)
Issue Age Standard -- Table F Table G -- Table P
AUTOMATIC ISSUE LIMIT (INCLUDES RETENTION)
Issue Age Standard -- Table F Table G -- Table P
AUTOMATIC PROCESSING LIMIT (INCLUDES RETENTION)
Issue Age Standard -- Table F Table G -- Table P
FACULTATIVE OBLIGATORY AUTOMATIC BINDING LIMIT (EXCLUDES RETENTION)
Issue Age Standard -- Table F Table G -- Table P
FACULTATIVE OBLIGATORY AUTOMATIC ISSUE LIMIT (INCLUDES RETENTION)
Issue Age Standard -- Table F Table G -- Table P
JUMBO LIMIT
Issue Age Standard -- Table F Table G -- Table P
AMENDMENT NUMBER 1
This Amendment, effective October 15, 1999, is made by and between the three
Hartford Life Companies, HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND
ACCIDENT INSURANCE COMPANY, AND HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(collectively referred to as the Ceding Company) AND THE LINCOLN NATIONAL LIFE
INSURANCE COMPANY (referred to as the Reinsurer). It is attached to and becomes
a part of the Automatic Yearly Renewable Term Reinsurance Agreement dated
October 15, 1999.
The Reinsurer and Ceding Company agree that the Ceding Company's Foreign
National business will be reinsured under the terms of this Agreement except for
the following differences:
EXECUTION
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all amendments
and supplements thereto. It is executed in duplicate by:
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
[ILLEGIBLE]
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title [ILLEGIBLE] Title Assistant Secretary
Date 8-10-00 Date 8-9-00
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxx Xxxxxxxx
------------------------------ ------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxx Xxxxxxxx, FSA, MAAA
Vice President Individual Life Director Individual Life
Product & Marketing Product Development
Date 4/27/2000 Date 4/27/2000
FOREIGN NATIONAL EXHIBIT I
UNDERWRITING GUIDELINES FOR FOREIGN NATIONAL BUSINESS
FOREIGN NATIONAL EXHIBIT II
FOREIGN NATIONAL LOADINGS PER $1,000 OF FACE AMOUNT
REGION COUNTRIES LOADINGS
------------------------------------------------------------------------------
Latin America & Caribbean Argentina
Brazil
Chile
Costa Rica
Dominican Republic
Mexico
Panama
Paraguay
Uruguay
Venezuela
Cayman Islands
Belize
Virgin Islands
Western Europe Austria
Belgium
Denmark
Finland
France
Germany (Reunified)
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
Far East Hong Kong
Japan
Malaysia
Philippines
Singapore
Taiwan
South Korea
Australia
AMENDMENT NUMBER 2
This Amendment, effective October 15, 1999, is made by and between the three
Hartford Life Companies, HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND
ACCIDENT INSURANCE COMPANY, and HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
(collectively referred to as the Ceding Company) AND THE LINCOLN NATIONAL LIFE
INSURANCE COMPANY (referred to as the Reinsurer). It is attached to and becomes
a part of the Automatic Yearly Renewable Term Reinsurance Agreement dated
October 15, 1999.
Although the Reinsurer is not participating, the Reinsurer agrees that effective
March 15, 2000, the Ceding Company will be allowed to participate in a Table Two
to Standard Program as outlined in the Table Two to Standard Program Exhibit I.
EXECUTION
This Amendment does not alter, amend or modify the Reinsurance Agreement other
than as set forth in this Amendment, and it is subject otherwise to all the
terms and conditions of the Reinsurance Agreement together with all amendments
and supplements thereto. It is executed in duplicate by:
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(FORT XXXXX, INDIANA)
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title [ILLEGIBLE] Title Assistant Secretary
Date 8-10-00 Date 8-9-00
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxx Xxxxxxxx
------------------------------ ------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxx Xxxxxxxx, FSA, MAAA
Vice President Individual Life Director Individual Life
Product & Marketing Product Development
Date 4/27/2000 Date 4/27/2000
EXHIBIT I
TABLE 2 TO STANDARD PROGRAM EFFECTIVE MARCH 15, 2000
[Redacted]
ELIGIBILITY REQUIREMENTS
ALLOCATION OF CASES AMONG THE PROGRAM, CEDING COMPANY'S RETENTION, AND THE POOL
AMENDMENT NUMBER 3
This Amendment is made by and between the three HARTFORD LIFE COMPANIES,
HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY,
and HARTFORD LIFE AND ANNUITY INSURANCE COMPANY (collectively referred to as the
Ceding Company) AND THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (referred to as
the Reinsurer). It is attached to and becomes a part of the Automatic Yearly
Renewable Term Reinsurance Agreement dated October 15, 1999 (referred to as the
Reinsurance Agreement).
1. Effective October 1, 2000, Schedule A of the Reinsurance Agreement shall be
amended to
2. This Amendment does not alter, amend or modify the Reinsurance Agreement
other than as set forth in this Amendment, and it is subject otherwise to all
the terms and conditions of the Reinsurance Agreement together with all
amendments and supplements thereto.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
------------------------------- -------------------------------
Title Vice President Title Assistant Secretary
Date 3/12/01 Date 3/8/2001
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ Xxxxxxx X. Xxxxx Attest /s/ Xxx Xxxxxxxx
------------------------------- -------------------------------
Xxxxxxx X. Xxxxx, FSA, CLU Xxx Xxxxxxxx, FSA, MAAA
Vice President Director
Individual Life Product & Individual Life Product
Marketing Development
Date 1/24/01 Date 1/24/2001
SCHEDULE A
SPECIFICATIONS
(OCTOBER 1,2000)
TYPE OF BUSINESS Individual life insurance issued by the Ceding
Company
REINSURANCE POOL SHARE Reinsurer shall automatically reinsure of the
amount at risk on a policy reinsured by the Pool.
FACULTATIVE OBLIGATORY [Redacted]
PLANS OF INSURANCE
POLICY TYPES RIDERS
----------------------------------------------------------------------------------------------------------------
Interest Sensitive Whole Life Other Covered Insured (UL)
Stag Universal Life Term Rider (on base or other insured)
ART, 5, and 10 Yr Term (NY) Additional Insurance Benefit Rider (ISWL)
Stag Variable Life Increase in Coverage Option Rider (VL)
Artisan Variable Life Cost of Living Rider (UL)
Protector Variable Life Waiver of Premium
One Year Term ADB Benefit (not reinsured)
Accumulator Variable Life Deduction Amount Waiver Rider
Life Solutions I UL Waiver of Monthly Deduction
Life Solutions II UL Additional Purchase Option Rider
LBS I UL Guaranteed COI Benefit Rider
Universal Life V
20 Year Term
Single Premium Variable Life
(fully underwritten only)
MINIMUM REINSURANCE CESSION
[Redacted]
LEAD REINSURER
[Redacted]
AMENDMENT NUMBER 4
This Amendment is made by and between the three Hartford Life Companies,
HARTFORD LIFE INSURANCE COMPANY, HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY,
and HARTFORD LIFE AND ANNUITY INSURANCE COMPANY(collectively referred to as the
Ceding Company) AND THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (referred to as
the Reinsurer). It is attached to and becomes a part of the Automatic Yearly
Renewable Term Reinsurance Agreement dated October 15, 1999 (referred to as the
Reinsurance Agreement).
Effective June 1, 2002, the reinsurance rates per thousand for Protector
Variable Life and Accumulator Variable Life are replaced by the ALB annual
premium rates attached for both new business and in force policies. These ALB
annual premium rates replace the ALB annual premium rates for Protector Variable
Life and Accumulator Variable Life attached to Exhibit I.
In all other respects, said Agreement shall remain unchanged.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
---------------------------- ----------------------------
Title Vice President Title 2nd Vice President
Date 3/27/03 Date 3/27/03
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By /s/ [ILLEGIBLE] Attest /s/ [ILLEGIBLE]
---------------------------- ----------------------------
Xxxxxxx X. Xxxxx, FSA, XXX Xxxxxx X. Xxxxxxxx, FSA,
MAAA
Senior Vice President Assistant Vice President
Individual Life Product &
Marketing
Date 3/4/2003 Date 2/28/2003
AMENDMENT 5
EFFECTIVE JUNE 22, 2006
TO THE
REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 15, 1999
BETWEEN
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY,
HARTFORD LIFE INSURANCE COMPANY,
AND
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
("REINSURER")
RECITALS
WHEREAS, Xxxxxxxxx currently reinsures Ceding Company's plans or policies under
the Agreement; and
WHEREAS, Ceding Company and Reinsurer wish to amend or modify the Agreement.
NOW, THEREFORE for good and valuable considerations, receipt of which is hereby
acknowledged, Ceding Company and Reinsurer hereby agree as follows:
AMENDMENT
The parties hereby agree that the Ceding Company will no longer cede and the
Reinsurer will no longer accept reinsurance under this Agreement for policies
issued on or after June 22, 2006. Reinsurance that is now in force under this
Agreement will continue to be governed by the terms and conditions of the
Agreement until the termination or expiration of all such reinsurance.
Except as herein amended, all other terms and conditions of this Agreement shall
remain unchanged.
Single Life Excess Pool -- Amendment 5
Between HLA, HLIC, HLAIC and Lincoln
Effective 10/15/1999
1
In witness of the foregoing, Ceding Company and Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below, with an effective date of June 22, 2006.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxxxxxx Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Name: Xxxxxxx Xxxxxxxxx Name: [ILLEGIBLE]
Title: Vice President Title: Vice President
Date: 7/13/06 Date: 7/13/06
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY,
HARTFORD LIFE INSURANCE COMPANY,
AND
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxxxx X. Xxxxxxxx Attest: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxxxx X. Xxxxxxxx Name: Xxxx Xxxxxx
Title: Vice President Individual Life Title: Vice President, Individual
Product Life Product Development
Date: 7/6/2006 Date: 7/6/2006
Single Life Excess Pool -- Amendment 5
Between HLA, HLIC, HLAIC and Lincoln
Effective 10/15/1999
2
AMENDMENT 6
EFFECTIVE JUNE 25, 2002
TO THE
AUTOMATIC YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE OCTOBER 15, 1999
BETWEEN
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
AND
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the Agreement; and
WHEREAS, the Reinsurer has agreed to automatically reinsure a policy that did
not otherwise qualify for Automatic Reinsurance when it was issued.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the Ceding Company and the Reinsurer hereby agree as follows:
1. The above recitals are true and accurate and are incorporated
herein.
2. The policy listed below shall be reinsured, on an Automatic
Reinsurance basis, under the terms of the Agreement.
3. Capitalized terms not defined in this Amendment shall have the
meaning set forth in the Agreement.
4. Except as herein amended, all other terms and conditions of the
Agreement shall remain unchanged.
Single Life Excess Treaty- Effective 10/15/1999
Between HLA, HLIC, HLAIC and Lincoln National
Amendment #6 -- Effective 06/25/2002
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, hereby executed this Amendment in duplicate on the dates
indicated below.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxx Xxxx Attest: /s/ Xxxxx X. Xxxxxxxx
------------------------------ ------------------------------
Name: Xxxxxx Xxxx Name: Xxxxx X. Xxxxxxxx
Title: Vice President Title: Vice President
Date: 11/21/2011 Date: 11/21/11
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxxxx Xxxxxx, FSA, MAAA
Title: Assistant Vice President and Title: Senior Vice President
Actutary Individual Life Individual Life Product
Product Management Management
Date: 12/1/11 Date: 12/2/11
Single Life Excess Treaty- Effective 10/15/1999
Between HLA, HLIC, HLAIC and Lincoln National
Amendment #6 -- Effective 06/25/2002
2
