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
MUNICH AMERICAN REASSURANCE 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 6
VIII. Reductions, Terminations, and Changes 6
IX. Increase in Retention 7
X. Reinstatement 8
XI. Expenses 8
XII. Claims 9
XIII. Extra-Contractual Damages 10
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 16
XXII. Notices and Communications 17
XXIII. Effective Date 17
XXIV. Execution 18
SCHEDULES
A. Specifications 19
B. Basis of Reinsurance 20
EXHIBITS
I. Reinsurance Premium Calculation 21
II. Retention, Binding, and Issue Limits 22
III. Premium Rates 23
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
Munich American Reassurance 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.
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.
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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 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 certain risk amounts 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.
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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.
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:
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.
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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.
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
insurance reinsured under this Agreement or to assert defenses to a claim for
such insurance. If the Reinsurer agrees to participate in the contest or
assertion of defenses and if the Ceding Company's contest of such insurance
results in the increase or reduction of liability, then the Reinsurer will share
in this increase or reduction. The Reinsurer's percentage of the increase or
reduction will be their portion of 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.
The Ceding Company will send to the Reinsurer a copy of all papers in connection
with the contested claim.
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 the reinsurance (i.e. -- Reinsurer's portion
of the Net Amount a Risk at Death and interest and Non-Routine Expenses as
defined in Section F of this Article incurred up to the point of claim decision)
and not sharing in any subsequent increase or reduction in liability.
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Ceding Company shall operate in good faith and adjudicate claims to policies
reinsured under this Agreement as if there were not reinsurance. The Ceding
Company's decision to pay a claim in accordance with their contractual liability
is binding on the Reinsurer.
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.
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 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, including but not limited to Punitive Damages (as defined later in this
Article), 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.
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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.
For purposes of this Article, the following definitions will apply:
"Punitive Damages" are those damages awarded as a penalty, the amount of which
is neither governed nor fixed by statute.
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.
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
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any discropancies. 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 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
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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 Agreement 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 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
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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 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.
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ARTICLE XIX
TERMINATION
A. Each of the Hartford Life Insurance Company and the Reinsurer may terminate
this Agreement as it applies to the 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 Reinsurer 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.
C. Severability
In the event that any provision or term of this Agreement shall be held by any
court, arbitrator, or administrative agency to be invalid, illegal or
unenforceable, all of the other terms and provisions shall remain in full force
and effect to the extent that their continuance is practicable and consistent
with the original intent of the parties. In addition, if any provision or term
is held invalid, illegal or unenforceable, the parties will attempt in good
faith to renegotiate the Agreement to carry out the original intent of the
parties.
D. Survival
All provisions of this Agreement shall survive its termination to the extent
necessary to carry out the purposes of this Agreement or to ascertain and
enforce the parties' rights or obligations hereunder existing at the time of
termination.
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E. Non-Waiver
No waiver by either party of any violation or default by the other party in the
performance of any promise, term or condition of this Agreement shall be
construed to be a waiver by such party of any other or subsequent default in
performance of the same or any other promise, term or condition of this
Agreement. No prior transactions or dealings between the parties shall be deemed
to establish any custom or usage waiving or modifying any provision hereof. The
failure of either party to enforce any part of this Agreement shall not
constitute a waiver by such party of its right to do so, nor shall it be deemed
to be an act of ratification or consent.
F. Governing Law
This Agreement shall be governed by the laws of the state of Connecticut.
G. Assignment
Neither party may assign any of its rights, duties or obligations under this
Agreement without the prior written consent of the other party. Such consent
shall not be unreasonably withheld.
H. Counterparts
This Agreement may be executed in one or more counterparts, each of which shall
constitute an original.
I. Force Majeure
Neither party shall be liable for any delay or non-performance of any covenant
contained herein nor shall any such delay or non-performance constitute a
default hereunder, or give rise to any liability for damages if such delay or
non-performance is caused by an event of "force majeure." As used herein, the
term "Force Majeure," means an event, explosion, action of the elements, strike
or other labor relations problem, restriction or restraint imposed by law, rule
or regulation of any public authority, whether federal, state or local, and
whether civil or military, act of any military authority, interruption of
transportation facilities or any other cause which is beyond the reasonable
control of such party and which by the exercise of reasonable diligence such
party is unable to prevent. The existence of any event of Force Majeure shall
extend the term of performance on the part of such party to complete performance
in the exercise of reasonable diligence after the event of Force Majeure has
been removed.
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.
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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 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
ARTICLE XXIII
EFFECTIVE DATE
The provisions of this Agreement shall be effective with respect to policies
issued on or after June 15, 2001.
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ARTICLE XXIV
EXECUTION
MUNICH AMERICAN REASSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
------------------------------ ------------------------------
Title: Assistant Vice President Title: Vice President
Date: 10/20/2003 Date: 10/20/03
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
Date: 9/22/03 Date: 10/3/2003
18
SCHEDULE A
SPECIFICATIONS
TYPE OF BUSINESS Individual life insurance issued by the
Ceding Company
REINSURER'S POOL SHARE
[Redacted]
PLANS OF INSURANCE
POLICY TYPES RIDERS
------------------------------------------------------------------------
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]
19
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]
20
EXHIBIT I
REINSURANCE PREMIUM CALCULATION
1. LIFE REINSURANCE PREMIUM
[Redacted]
2. FLAT EXTRA PREMIUMS
[Redacted]
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. For both the Waiver of premium and Waiver of monthly
deduction, the reinsurance premium will be net of the following allowances:
21
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]
22
EXHIBIT III
PREMIUM RATES
The rates to be used to calculate premium for automatic issues are attached.
[Redacted]
23
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 Munich American Reassurance Company (referred to as
Reinsurer), dated June 15, 2001. The parties agree to the following: [Redacted]
In all other respects, said Agreement shall remain unchanged.
MUNICH AMERICAN REASSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
----------------------------- -----------------------------
Title: Assistant Vice President Title: Vice President
Date: 10/20/2003 Date: 10/20/03
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ [ILLEGIBLE] Attest: /s/ [ILLEGIBLE]
----------------------------- -----------------------------
Title: Senior Vice President Title: Assistant Vice President
Date: 9/22/03 Date: 10/03/2003
TERMINATION ADDENDUM
EFFECTIVE DECEMBER 31, 2002
TO THE
AUTOMATIC YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE JUNE 15, 2001
BETWEEN
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE INSURANCE COMPANY
AND
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
("CEDING COMPANY")
AND
MUNICH AMERICAN REASSURANCE COMPANY
("REINSURER")
("AGREEMENT")
WHEREAS, the Reinsurer currently reinsures the Ceding Company's plans or
policies under the above-referenced Agreement; and
WHEREAS, the Ceding Company and the Reinsurer have agreed to terminate the
Agreement for new business effective December 31, 2002.
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. Effective December 31, 2002, the Ceding Company will no longer cede, and
the Reinsurer will no longer accept, polices whose original application
date was on or after December 31, 2002. The Agreement will continue to
apply to all in force reinsurance until the termination or expiration of
all such reinsurance.
3. Except as herein amended, all other terms and conditions of the Agreement
shall remain unchanged and in full force and effect.
Automatic Renewable Term
Reinsurance Agreement -- Effective 6/15/2001
Between HLAIC, HLIC, HLA and Munich Re
Termination Addendum -- Effective 12/31/2002
MARC Treaty ID 2942 -- AMD #2
1
In witness of the foregoing, the Ceding Company and the Reinsurer have, by their
respective officers, executed the termination addendum in duplicate on the dates
indicated below.
MUNICH AMERICAN REASSURANCE COMPANY
By: /s/ Xxxx Xxxxxxxx Attest: /s/ Xxxxxxx X. Xxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxxx Name: Xxxxxxx X. Xxxx
Title: Vice President & Actuary Title: Second Vice President, Treaty
Date: November 15, 2011 Date: 11/15/11
HARTFORD LIFE INSURANCE COMPANY
HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By: /s/ Xxxx Xxxxxxx Attest: /s/ Xxxxx X. Xxxxxx
------------------------------ ------------------------------
Name: Xxxx Xxxxxxx, FSA, MAAA Name: Xxxxx X. Xxxxxx
Title: Assistant Vice President and Title: Vice President & Actuary
Actuary
Individual Life Product
Management
Date: October 6, 2011 Date: October 6, 2011
Automatic Renewable Term
Reinsurance Agreement -- Effective 6/15/2001
Between HLAIC, HLIC, HLA and Munich Re
Termination Addendum -- Effective 12/31/2002
MARC Treaty ID 2942 -- AMD #2
2
