AUTOMATIC
REINSURANCE AGREEMENT
(Referred to as "this Agreement")
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
A Delaware Corporation with Executive Offices
in New York, New York
(Reinsured referred to as you, your)
and
(Reinsurer referred to as we, us, our)
[Specimen]
TABLE OF CONTENTS
ARTICLES PAGE
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I Basis of Reinsurance 3
II Liability 4
III Notification of Reinsurance 4
IV Plans Of Reinsurance 4
V Reinsurance Premiums 4
VI Premium Accounting 4
VII Oversights 6
VIII Reductions, Terminations And Changes 6
IX Increase In Retention 7
X Reinstatement 7
XI Expenses 8
XII Claims 8
XIII DAC Tax Requirements 9
XIV Inspection Of Records 9
XV Insolvency 10
XVI Arbitration 10
XVII Parties To Agreement 11
XVIII Entire Agreement 11
XIX Duration Of Agreement 11
SCHEDULE
A Specifications
EXHIBITS
I Reinsurance Premiums
II Retention Limits
III Reinsurance Questionnaire - DAC Tax
IV DAC Tax Report
______, anticipates that these premiums will be continued indefinitely
for all business ceded under this Agreement. For the purpose of satisfying
requirements for deficiency reserves imposed by various state Insurance
departments, _______ will guaranty for renewal the greater of the premiums
provided in this Agreement or premiums based on the 1980 CSO Table at 2.5%
interest.
ALL SCHEDULES AND EXHIBITS REFERRED TO HEREIN
WILL BE CONSIDERED PART OF THIS AGREEMENT.
ARTICLE I
BASIS OF REINSURANCE
1. Reinsurance Basis
Reinsurance under this Agreement must be life insurance as stated in
Schedule A. You must automatically reinsure and we must automatically
accept the life insurance for the plans and riders as stated in
Schedule A. Our liability for the risks ceded shall be based on the
quota share specified in Schedule A unless a greater amount is
reinsured pursuant to Paragraph 2 of this Article.
2. Requirements For Automatic Reinsurance
A. The individual risk must be a resident of the U.S., Canada or
Mexico.
B. The individual risk must be underwritten by you according to
your underwriting practices or guidelines. For those purposes,
individual risks that arise as the result of a conversion from
a prior term policy will be considered to be underwritten by
you according to your underwriting practices and guidelines.
The individual must be classified as non-smoker, standard, or
substandard, in accordance with those guidelines.
C. Any risk offered on a facultative basis by you to us or any
other company will not qualify for automatic reinsurance.
D. The maximum issue age on any risk will be age 90.
E. The mortality rating on each individual risk may be standard
or substandard according to your published underwriting
guidelines.
F. The maximum amount of insurance issued and applied for in all
companies on each life must not exceed the jumbo limit as
stated in Schedule A.
G. On each individual life, you must retain 20% of the amount of
each risk.
H. The maximum amounts of insurance to be reinsured on a life
must not exceed the automatic binding limits as stated in
Schedule A.
3. Requirements For Facultative Reinsurance:
A. If the Requirements for Automatic Reinsurance on an individual
life are not met, or are met but you prefer to apply for
facultative reinsurance for the amount in excess of the risk
multiplied by the quota share set forth in Schedule A, then
you must submit to us all the papers relating to the
insurability of that individual risk for facultative
reinsurance.
B. Copies of all the papers relating to the insurability of the
individual risk must be sent to us for facultative
reinsurance. After we have examined the papers sent, we will
promptly notify you of our final underwriting offer or our
underwriting offer subject to additional requirements. Our
final underwriting offer on the individual risk will
automatically terminate when one of the following situations
occurs:
(i) The date we receive notice from you of the withdrawal
of your application, or
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(ii) 120 days after we made our offer, or
(iii) The date specified in our approval to extend our
offer
4. General Requirements
A. The initial minimum amount of life insurance on each policy
must be the amount stated in Schedule A.
B. In no event will we be liable for reinsurance unless the
issuance of the insurance, issued directly by you, constituted
the doing of business in a jurisdiction in which you are
properly licensed.
ARTICLE II
LIABILITY
1. Our liability for automatic reinsurance will begin simultaneously with
your liability. For covered policies issued by you pursuant to a
conversion from a prior term policy, our liability will begin
simultaneously with your liability under the policy listed in Schedule
A.
2. Our liability for facultative reinsurance on each policy will begin
simultaneously with your liability once we have accepted the
application for facultative reinsurance in writing and you have
accepted our offer.
3. Our liability for reinsurance on each policy will terminate when your
liability terminates.
4. The initial and subsequent reinsurance premiums must be received by us
on a timely basis as provided in Article VI for us to maintain our
liability of each individual risk.
ARTICLE III
NOTIFICATION OF REINSURANCE
1. You will inform us of any reinsurance by submitting a monthly
accounting statement as described in Article VI.
ARTICLE IV
PLANS OF REINSURANCE
1. Life reinsurance will be on a yearly renewable term basis, based on the
net amount at risk. The net amount at risk is equal to the face amount
less the cash value.
2. When requested, you must furnish us with a copy of each policy, rider
and rate book which applies to the life insurance reinsured.
ARTICLE V
REINSURANCE PREMIUMS
1. The life reinsurance premium on the net amount at risk will be
determined in accordance with Exhibit I.
ARTICLE VI
PREMIUM ACCOUNTING
1. Payment of Reinsurance Premiums.
A. The reinsurance premiums will be paid to us on the basis
stated in Exhibit I.
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B. You will prepare and submit to us a monthly statement which
will provide the pertinent policy Premium details on a
mutually agreed upon report format, within thirty days
following the last day of the same calendar month. The net
monthly premiums due will be the balance of the monthly
premiums due on reinsurance in force at the end of the
immediately preceding calendar month plus the premiums on new
business reinsured during the current month less the premium
refunds due you on deaths, lapses and changes.
C. If the monthly statement shows a net reinsurance premium
balance is payable to us, you must remit this amount due us
within thirty days. If the amount is not paid within the
prescribed period, the reinsurance premiums for all of the
reinsurance risks listed on the statement will be delinquent.
D. If a net reinsurance premium balance is payable to you, we
must remit our payment to you within thirty days after
receiving your statement.
2. Termination Because of Non-Payment of Premium.
When reinsurance premiums are delinquent, we have the right to
terminate the reinsurance upon thirty days' written notice. As of the
close of this thirty-day period all of our liability will terminate
for:
A. The risks described in the preceding sentence and
B. The risks where the reinsurance premiums became delinquent
during the thirty-day period.
Regardless of these terminations, you will continue to be liable to us
for all unpaid reinsurance premiums earned by us, You agree that you
will not force termination under this provision solely to avoid the
recapture requirements or to transfer the block of business reinsured
to another reinsurer.
3. Reinstatement of a Delinquent Statement.
You 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, we will not
be liable for any claim incurred between the date of termination and
reinstatement. The effective date of reinstatement will be the day we
receive the required back premiums.
4. Currency.
The reinsurance premiums and benefits payable under this Agreement will
be payable in the lawful money of the United States.
5. In Force Listing
Within sixty days after the close of the calendar year, you will send
us an in force listing of all policies reinsured under this Agreement.
6. Offset
Any amounts due by either of the parties to this Agreement under this
Agreement may be offset against the claims of the other party. This
right will continue to exist after the termination of this Agreement,
or of any business relationship between the parties.
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7. Balances In Default
We reserve the right to charge interest at the Prime Rate plus 2% as
stated in the Wall Street Journal on the first business day in January
prior to the due date of the premium when renewal premiums are not paid
within sixty (60) days of the due date or premiums for new business are
not paid within one hundred twenty (120) days of the date the policy is
issued.
ARTICLE VII
OVERSIGHTS
If there is an unintentional oversight or misunderstanding in the administration
of this Agreement by either company, it can be corrected provided the correction
takes place promptly after the time the oversight or misunderstanding is first
discovered. Both companies will be restored to the position they would have
occupied had the oversight or misunderstanding not occurred.
ARTICLE VIII
REDUCTIONS, TERMINATIONS AND CHANGES
1. If there is a contractual or non-contractual replacement or change in
the insurance reinsured under this Agreement where full underwriting
evidence according to your regular underwriting rules is not required,
the insurance will continue to be reinsured with us.
2. If the insurance reinsured under this Agreement increases and
A. The increase is subject to new underwriting evidence, the
provisions of Article I shall apply to the increase in
reinsurance.
B. The increase is not subject to new underwriting evidence, we
will accept automatically the increase in reinsurance but not
to exceed our automatic binding limit.
3. If the insurance reinsured under this Agreement is increased or
reduced, the reinsurance for each policy involved will be
proportionately increased or reduced on the effective date of increase
or reduction.
4. If any portion of the total insurance retained by you on an individual
life reduces or terminates, any reinsurance under this Agreement based
on the same fife will also be reduced or terminated. You will reduce
your reinsurance by applying the retention limits which were in effect
at the time the policy was issued. You will not be required to retain
an amount in excess of your 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.
You must first reduce the reinsurance of the insurance which has the
same mortality rating as the terminated insurance. If further reduction
is required, the reinsurance to be terminated or reduced will be
determined by chronological order in which the reinsurance was first
reinsured.
5. If the insurance for a risk is shared by more than one reinsurer, our
percentage of the increased or reduced reinsurance will be the same as
our percentage of the initial reinsurance of each policy.
6. If insurance reinsured under this Agreement is terminated, the
reinsurance for the policy involved will be terminated on the effective
date of termination.
7. On facultative reinsurance, if you wish to reduce the mortality rating,
this reduction will be subject to the facultative provisions of this
Agreement.
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8. If at the time of a contractual or non-contractual change where full
underwriting evidence is not required, you elect not to continue to
reinsure the risk with us, you must pay us an early recapture charge as
negotiated with us.
9. We will refund to you all unearned reinsurance premiums, less
applicable allowances, arising from reductions, terminations and
changes as described in this Article.
ARTICLE IX
INCREASE IN RETENTION
1. If you should increase the retention limits as listed in Exhibit II,
prompt written notice of the increase must be given to us.
2. You will have the option of recapturing the reinsurance under this
Agreement when your retention limit increases. You may exercise your
option to recapture by giving written notice to us within ninety days
after the effective date of the increase.
3. If you exercise this option to recapture, then
A. You must reduce the reinsurance on each individual life on
which you retained 20% of your maximum retention limit for the
age and mortality rating that was in effect at the time the
reinsurance was ceded to us.
B. No recapture will be made to reinsurance on an individual life
if you did not retain insurance on the life.
C. You must increase your total amount of insurance on the
individual life up to your new retention limit by reducing
the total reinsurance on that life by the same amount. If an
individual life is shared by more than one reinsurer, our
percentage of the reduced reinsurance will be the same
percentage as our initial reinsurance on the individual risk.
D. The reduction of reinsurance will become effective on the
later of the following dates;
(1) The policy anniversary date immediately following the
effective date of your increase in retention limits.
(2) The number of years stated in Schedule A starting
with the original policy date shown on your listing.
ARTICLE X
REINSTATEMENT
If insurance lapses for nonpayment of premium and is reinstated under your terms
and rules, the reinsurance will be reinstated by us. You must pay us all back
reinsurance premiums in the same manner as you received insurance premiums under
your policy. If we are requested to reinstate a policy that was originally ceded
to us on a facultative basis, then you must submit the policy and associated
papers concerning the individual's insurability to us to be underwritten and
approved for the reinsurance to be reinstated if:
A. the policy lapsed for six months or longer, or
B. you seek additional underwriting information, or
C. you reinsure 100% of the policy.
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If the above conditions are not present, you may automatically reinstate a
policy that was originally ceded to us on a facultative basis.
ARTICLE XI
EXPENSES
You must pay the expense of all medical examinations, inspection fees and other
underwriting expenses in connection with the issuance of the insurance.
ARTICLE XII
CLAIMS
1. Our liability under this Agreement for the insurance benefits reinsured
based on our quota share percentage will be the same as your liability
for such benefits. All reinsurance claim settlements will be subject to
the terms and conditions of the particular contract under which you are
liable. We will also be liable based on our quota share percentage for
insurance benefits payable under covered riders.
2. When you are advised of a claim, you must promptly notify us.
3. If a claim is made under insurance reinsured under this Agreement, we
will abide by the issue as it is settled by you. The maximum benefit
payable to you under each reinsured policy is the amount specifically
reinsured with us. When you request payment of the reinsurance
proceeds, you must deliver a copy of the proof of death and the
claimant's statement to us.
4. Payment of reinsurance proceeds will be made in a single sum regardless
of your mode of settlement.
5. A. You must promptly notify us of your intent to contest
insurance reinsured under this Agreement or to assert defenses
to a claim for such insurance. If your contest of such
insurance results in the reduction of your liability, we will
share in this reduction. Our percentage of the reduction will
be our net amount of risk on the individual life as it relates
to your total net amount at risk on the date of the death of
the insured.
B. If we should decline to participate in the contest or
assertion of defenses, we will then release all of our
liability by paying you the full amount of reinsurance and not
sharing in any subsequent reduction in liability.
6. If the amount of insurance provided by the policy or policies reinsured
under this Agreement is increased or reduced because of a misstatement
of age or sex established after the death of the insured, we will share
with you in this increase or reduction. Our share of this increase or
reduction will be the percentage that our net liability relates to your
total net liability, immediately prior to this increase or reduction.
Any adjustment in reinsurance premiums will be made without interest.
7. You must pay the routine expenses incurred in connection with settling
claims. These expenses may include compensation of agents and employees
and the cost of routine investigations.
8. We will share with you 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. These expenses will be shared in proportion to the net sum
at risk for both of us. However, if we have released our liability
under Paragraph 5 of this Article, we will not share in any expenses
incurred after our date of release.
9. Notwithstanding anything contained in this Article to the contrary, we
will pay our proportionate share of a fixed judgment which includes
extra-contractual damages awarded against you in a lawsuit arising out
of a contested claim in which we have elected to be a party pursuant to
Paragraphs 5 and 8 of this Article, so long as we were
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consulted by you and concurred in writing in advance with the act,
omission or course of conduct which led to or resulted in such award of
extra-contractual damages.
10. If either a misrepresentation or misstatement on an application or a
death of an insured by suicide results in you returning the policy
premiums to the policy owner rather than paying the policy benefits, we
will refund all of the reinsurance premiums we received on that policy
to you. This refund given by us will be in lieu of all other
reinsurance benefits payable on that policy under this Agreement. If
there is an adjustment to the policy benefits due to a
misrepresentation or misstatement of age or sex, a corresponding
adjustment will be made to the reinsurance benefits.
ARTICLE XIII
DAC TAX REQUIREMENTS
The parties hereby agree to the following provisions pursuant to Section
1.848-2(g)(8) of the Income Tax Regulations adopted December 28, 1992, under
Section 848 of the Internal Revenue Code of 1986, as amended. This election
shall be effective for calendar year 1995 and for all subsequent taxable years
for which this Agreement remains in effect.
1. The term "party" refers to either the you or us, as appropriate.
2. The terms used in this Provision are defined by reference to Regulation
Section 1.848-2, adopted December 28, 1992.
3. 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 Section 848(c)(1).
4. 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.
5. You will submit a schedule (Exhibit IV) to us by May 1st of each year
of its calculation of the net consideration for the preceding calendar
year. This schedule of calculations will be accompanied by a statement
signed by one of your officers stating that you will report such net
consideration in your tax return for the preceding calendar year. We
will inform you whether we agree with the amounts in your schedule by
May 31st; otherwise the amounts will be presumed to be accurate.
6. We shall report the net consideration determined by you in our tax
return for the previous calendar year, unless we contest your
calculation of the net consideration. If we contest your calculation of
the net consideration, the parties will act in good faith to reach an
agreement as to the correct amount. If we reach an agreement with you
on an amount of net consideration, each party will report such amount
on their respective tax returns for the previous calendar year. If we
fail to reach an agreement with you on an amount of net consideration,
each party may choose to report their own determination of net
consideration on their respective tax returns.
7. We shall complete the Reinsurance Questionnaire (Exhibit III) and
submit it to you with the information required by Exhibit IV.
ARTICLE XIV
INSPECTION OF RECORDS
We will have the right, at any reasonable time, to inspect your books and
documents which relate to your reinsurance under this Agreement.
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ARTICLE XV
INSOLVENCY
1. If you become insolvent, all of the reinsurance due you will be paid in
full directly to you or your liquidator (receiver or statutory
successor) on the basis of your liability under the policy or policies
reinsured, without diminution because of your insolvency.
2. If you become insolvent, the liquidator will give us written notice of
a pending claim against you for insurance reinsured under this
Agreement within a reasonable time after the claim is filed in the
insolvency proceeding. During the insolvency proceedings where the
claim is to be settled, we may investigate this pending claim and
interpose in your or your liquidator's name, but at our own expense,
any defense or defenses which we may believe available to you or your
liquidator.
3. The expenses incurred by us will be chargeable, subject to court
approval, against you as part of the expense of liquidation, to the
extent of the proportionate share of the benefit which may accrue to
you solely as a result of the defense undertaken by us. Where two or
more reinsurers are involved in the same claim and a majority in
interest elect to interpose a defense or defenses to this claim, the
expense will be apportioned in accordance with the terms of this
Agreement as though such expense had been incurred by you.
4. In the event of our insolvency, as determined by the department of
insurance responsible for such determination, all reinsurance ceded
under this Agreement may be recaptured immediately by you without
penalty, effective as of the day prior to the earlier of our becoming
insolvent or the date of such determination by the said department of
insurance.
5. Where two or more reinsurers are members of a pool of reinsurers
established hereby, the insolvency of one reinsurer shall not be
deemed to abrogate this Agreement with respect to the other reinsurers.
ARTICLE XVI
ARBITRATION
1. The parties agree to act in all things with the highest good faith.
However, if the parties cannot mutually resolve a dispute or claim,
which arises out of, or in connection with this Agreement, including
formation and validity, and whether arising during, or after the period
of this Agreement, the dispute or claim will be settled by arbitration.
The arbitrators will have the authority to interpret this Agreement and
in doing so will consider the customs and practices of the life
insurance and life reinsurance industries. To initiated arbitration,
either party will notify the other party by certified mail of its
desire to arbitrate, stating the nature of the dispute and the remedy
sought. The party to which the notice is sent with respond to the
notification in writing within ten (10) days of receipt.
2. There must be three arbitrators who will be current or past officers of
life insurance companies other than the contracting companies or their
subsidiaries or affiliates. Each of the contracting companies will
appoint one of the arbitrators and these two arbitrators will select
the third.
In the event either contracting company is unable to choose an
arbitrator within thirty days after the other contracting company has
given written notice of its arbitrator appointment, the contracting
company which has given written notice may choose two arbitrators who
shall in turn choose a third arbitrator before entering arbitration. If
the two arbitrators are unable to agree upon the selection of a third
arbitrator within thirty days following their appointment, each
arbitrator shall nominate three candidates within ten days thereafter,
two of whom the other shall decline and the decision shall be made by
drawing lots.
3. With regard to (2) above, arbitration must be conducted in accordance
with the Commercial Arbitration Rules of the American Arbitration
Association which will be in effect on the date of delivery of demand
for arbitration.
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4. Each party will pay the fees of its own attorneys, the arbitrator
appointed by that party, and all other expenses connected with the
presentation of its own case. The two parties will share equally in the
cost of the third arbitrator. The arbitration hearing will be held in
New York City.
5. The award agreed by the arbitrators will be final, and judgment may be
entered upon it in any court having jurisdiction. The arbitrators
cannot award punitive damages.
ARTICLE XVII
PARTIES TO AGREEMENT
This is an Agreement solely between you and us. There will be no legal
relationship between us and any person having an interest of any kind in any of
your insurance.
ARTICLE XVIII
ENTIRE AGREEMENT
1. This Agreement shall constitute the entire agreement between the
parties with respect to the insurance policies or contracts reinsured
and there are no understandings between the parties other than as
expressed in this Agreement.
2. Any change or modification to the Agreement shall be null and void
unless made by amendment to the Agreement and signed by both parties.
ARTICLE XIX
DURATION OF AGREEMENT
1. This Agreement may be terminated, with respect to the percentage
participation in the risks reinsured hereunder by us, as set forth in
Schedule A, at any time by either company giving 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 either company will be
the first day of the ninety-day period.
2. During the ninety-day period, you will continue to submit cases and we
will continue to accept them. Our acceptance will be subject to the
terms of this Agreement and your payment of reinsurance premiums.
3. After termination, we will both be liable for all automatic reinsurance
which becomes effective prior to termination of this Agreement and also
for all facultative reinsurance approved by us based upon applications
we received prior to termination of this Agreement.
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4. Additionally, this Agreement may be terminated immediately for the
acceptance of new reinsurance by either party if the parties materially
breach this Agreement or become insolvent or financially impaired.
Executed in duplicate by Executed in duplicate by
NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
at New York, New York, at
on Sept. 25, 1998 on 12/23, 1998.
By /s/ Xxxxxx X. Xxxxx By
-------------------------------- -------------------------------
Title: Corporate VP & Actuary Title:
By /s/ By
-------------------------------- -------------------------------
Title: Title:
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NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
SCHEDULE A
SPECIFICATIONS
1. TYPE OF BUSINESS: Survivorship Variable Universal Life (SVUL)
2. PLANS OF INSURANCE:
Policies: SVUL
Riders: Supplementary Term Rider
Living Benefits Rider
3. EFFECTIVE DATE: June 5, 1998
4. BASIS OF REINSURANCE: % first dollar quota share of each risk until your
retention limit is reached.
5. JUMBO LIMIT: $ limit on all coverage (in force and
proposed) on both lives.
U.S. And Mexico
Canada Residents Residents Issue Age Youngest Insured
---------------- --------- --------------------------
6. BINDING LIMITS:* $ $ Age 0 - 65
$ $ Age 66 - 75
$ $ Age 76 and over
7. POLICY MINIMUM: $
8. YEARS TO RECAPTURE: Ten
----------------
*Binding Limit will be based on the youngest age with the following
restrictions:
1. Both lives rated above Class D - no policy will be issued
2. When the younger life is rated above your Class D, the following issue
limit applies:
a) Younger life 65 or less, older 71-80 $
b) Younger life 80 or less, older 81-85** $
c) Younger life 80 or less, older 86-90** $
**Older life not rated above your Class C
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
EXHIBIT I
INSTRUCTIONS FOR THE PREMIUMS PER $1,000 OF REINSURANCE
1. REINSURANCE PREMIUMS
Reinsurance premiums under this Agreement will be based on your
frasierized pricing mortality, less the following allowances (expressed
as a percentage of reinsurance premiums) plus any applicable flat extra
premiums:
Policy Year(s) All Underwriting Classes
1 %
2 and over %
The net rates in years 2 and later will be a minimum of $1,000.
All policy fees will be retained by you.
2. FLAT EXTRA PREMIUMS
The flat extra premium will be the annual flat extra premium which you
charge your insured on that amount of the insurance reinsured less the
following allowances (expressed as a percentage of reinsurance
premiums):
Terms of Your
Flat Extra Premium First Year Renewal Years
------------------ ---------- -------------
More than 5 years % %
5 years or less % %
3. RENEWAL OF INSURANCE
The renewal of insurance shall be considered as a continuation of the
original insurance for the purpose of calculating future reinsurance
premiums.
4. PREMIUM TAX
We will not reimburse you for any premium taxes.
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
EXHIBIT II
YOUR CORPORATE RETENTION LIMITS
Issue Age
Classification Youngest Insured Retention Limit Overall Maximum
-------------- ---------------- --------------- ---------------
All 0-65 $ plus up to an $
additional $
subject to the approval
of your Chief Underwriter.
66-75 $ plus up to an $
additional $ subject
to the approval of your
Chief Underwriter.
76 and $ plus to an $
Over additional $ subject
to the approval of your
Chief Underwriter.
Note: New York Life Insurance and Annuity Corporation will have a retention
limit Of $ with over retention amounts reinsured by its parent
company, New York Life Insurance Company, up to the corporate retention
limit.
EXHIBIT III
REINSURANCE QUESTIONNAIRE
FOR FEDERAL INCOME TAX DETERMINATIONS
The purpose of this questionnaire is to secure sufficient information to allow
New York Life Insurance and Annuity Corporation to account properly under the
federal income tax rules for the reinsurance transactions we have with you.
Please provide us with the following information;
1. Are you either
(a) a company that is subject to U.S. taxation directly under the
provisions of subchapter L of chapter 1. of the Internal Revenue
Code (i.e., an insurance company liable for filing Form 1120L or
Form 1120-PC), or
(b) a company that is subject indirectly to U.S. taxation under the
provisions of subpart F of subchapter N of chapter 1 of the
Internal Revenue Code (i.e., a "controlled foreign corporation"
with the meaning of Internal Revenue Code Section 957)?
Answer: _____ Yes _____ No
2. If your answer to 1. is no, have you entered into a closing agreement
with the Internal Revenue Service to be subject to U.S. taxation with
respect to reinsurance income pursuant to Treasury Regulation Section
1.848-2(h)(2)(ii)(B)?
Answer: ______ Yes _____ No
(If your answer is yes, please provide a copy of the closing
agreement.)
Company Name: _______________________________
Signed by: __________________________________ Title: ______________________
Date: _______________________________________
EXHIBIT IV
DAC TAX CAPITALIZED AMOUNTS*
FOR THE YEAR ENDING
----
ON REINSURANCE CEDED TO
-------------------------
GROSS BASIS:
TYPE OF TREATY GROSS EXPERIENCE CAPITALIZED
TREATY DESCRIPTION PREMIUM REFUNDS AMOUNT
------ ----------- ------- ---------- -----------
YRT
COINS
-----
TOTAL CAPITALIZED AMOUNTS ON A GROSS BASIS: $
FULL NETTING BASIS:
TYPE OF TREATY GROSS EXPERIENCE POLICY CAPITALIZED
TREATY DESCRIPTION PREMIUM REFUNDS ALLOWANCES CLAIMS BENEFITS AMOUNT
------ ----------- ------- ---------- ---------- ------ -------- -----------
YRT
COINS
MODCO
-----
TOTAL CAPITALIZED AMOUNTS ON A FULL NETTING BASIS
* To be reported in conformity with Section 848 of the Internal Revenue Code
Signed by:
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Title:
---------------------------------------
Signature:
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Date:
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AMENDMENT NUMBER ONE TO REINSURANCE AGREEMENT
CEDING COMPANY: New York Life Insurance and Annuity Corporation ("you" or
"Your")
REINSURER: ("we," "us" or "our")
EFFECTIVE DATE OF AMENDMENT: JANUARY 1, 2000
This Amendment hereby amends and is made part of the Automatic Reinsurance
Agreement effective June 5,1998 covering the Ceding Company's AD98 SVUL policies
("the Agreement").
As of the Effective Date of this Amendment;
1. Article I, Section 2G is deleted in its entirety and replaced by the
following:
G. For policies sold by a shareholder of NYLARC holding Company, Inc.,
on each individual life you must retain __% of the amount of each
risk.
For all other policies, on each individual life you must retain __%
of the amount of each risk.
2. A new Article XX is added to the Agreement as follows:
ARTICLE XX
REINSURANCE CEDED TO NYLARC
With respect to the following policies reinsured under this Agreement,
you may cede __% of the net amount at risk, up to a maximum of $
per individual life, to the New York Life Agent's Reinsurance Company
("NYLARC"):
1. Policies sold by a shareholder of NYLARC Holding Company, Inc., on
or after January 1,1999 and remaining in force as of January 1,
2000.
2. Policies sold by a shareholder of NYLARC Holding Company, Inc., on
or after January 1,2000.
The other terms and conditions of the Agreement not in conflict with the above
provisions remain the same.
IN WITNESS WHEREOF the said New York Life Insurance and Annuity Corporation and
of America have by their respective officers
executed and delivered these presents in duplicate on the date shown below.
NEW YORK LIFE INSURANCE NEW YORK LIFE INSURANCE
AND ANNUITY CORPORATION AND ANNUITY CORPORATION
Signed at New York, NY Signed at New York, NY
By Xxxxxx Xxxxxx By Xxxxxx X. Xxxxxxxxx
----------------------------- -----------------------------
Its authorized representative Its authorized representative
Title C V P & Actuary Title Associate Actuary
Date 12/14/00 Date 12/14/00
Signed at Signed at
By By
------------------------------ ------------------------------
Its authorized representative Its authorized representative
Title Title VP Pricing
Date 12/18/00 Date Dec. 18,2000
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