Exhibit 1-A(8)(d)(1)
Amendment No. 1
TO THE REINSURANCE AGREEMENT
BETWEEN
THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY
OF
SPRINGFIELD, ILLINOIS
and
THE FRANKLIN LIFE INSURANCE COMPANY
OF
SPRINGFIELD, ILLINOIS
Except as hereinafter specified, all terms and conditions of the
Reinsurance Agreement dated January 1, 1988, amendments and addenda attached
thereto shall apply, and this amendment is to be attached to and made part of
the aforesaid agreement.
This Amendment is Effective January 1, 1990.
I. REINSURANCE COVERAGE
Paragraph 3. of the REINSURANCE COVERAGE provision is hereby replaced by
the following paragraphs.
3. Life reinsurance under this agreement shall be term insurance for the
amount at risk that exceeds the REINSURED's retention. The amount of
reinsurance shall be the death benefit less the cash value less the
retention. The amount of reinsurance will be determined on each
anniversary of the policy. For Charter One policies in the first year,
the amount of reinsurance will be the Specified Amount (Initial Death
Benefit) less the Initial premium less the retention. For Equibuilder
policies, the amount of reinsurance shall be further reduced by the
amount reinsured with another company.
Paragraph 5. of the REINSURANCE COVERAGE provision is hereby replaced by
the following paragraphs.
5. If the REINSURED issues a policy as a continuation of a policy
reinsured under this agreement, reinsurance of the continuation shall
continue with the FRANKLIN. Such reinsurance shall be in effect under
the reinsurance agreement between the REINSURED and the FRANKLIN which
provides reinsurance of the policy form issued as a continuation if
there is such an agreement in effect on the effective date of the
continuation; otherwise, reinsurance shall be in effect under the terms
of this agreement.
If the REINSURED issues a policy as a continuation of a policy
not reinsured under this agreement, reinsurance shall be in effect under
this agreement only if all of the following is true:
(a) the original policy was issued by the FRANKLIN and is now a
continuation with the REINSURED.
(b) the FRANKLIN will reinsure the policies under the provisoins of
the Reinsurance Agreement in effect on the date of such
conversion; for purposes of calculating the premium for such
reinsurance, the date of issue of the converted policy shall be
considered the date of the original policy.
(c) if the original FRANKLIN policy was reinsured with other
companies, the appropriate amount of reinsurance will be
retroceded to the original reinsuring companies from the
FRANKLIN after the REINSURED has ceded to the FRANKLIN in
accordance with the continuation provisions of all agreements
II. APPENDIX I
The original Appendix I is hereby replaced by the attached Appendix I
(revised 1-1-90).
III. SCHEDULE B
The original Schedule B is hereby replaced by the attached Schedule B
(revised 1-1-90).
APPENDIX I
(Revised January 1, 1990)
Insurance Subject to Reinsurance under this Agreement
Policy Form 1701 Flexible Premium Adjustable
Life Insurance (Charter One)
Policy Form T1702 (XL Plus) - Universal Life
Policy Form T1735 (Equibuilder) - Flexible Premium
Variable Universal Life
Policy Form T0113 Term Insurance Rider on the
Additional Insured Person
In Witness Whereof, both parties have executed this Amendment No. 1 in duplicate
as follows:
AMERICAN FRANKLIN LIFE INSURANCE COMPANY
BY
TITLE President
DATE February 20, 1990
Witness:
BY
TITLE Sr. V.P. and Secretary
DATE February 20, 1990
THE FRANKLIN LIFE INSURANCE COMPANY
BY
TITLE Senior Vice President - Actuarial
DATE February 20, 1990
Witness:
BY
TITLE Vice President and Actuary
DATE February 20, 1990
SCHEDULE B
Maximum Amounts which the REINSURED may cede Automatically
LIFE
Substandard
Ages Standard Through Table P
---- -------- ---------------
0-70 $50,000 on an $50,000 on an
individual life individual life
ACCIDENTAL DEATH BENEFITS
$50,000
