AMENDMENT NO. 5 TO
AUTOMATIC REINSURANCE AGREEMENT
EFFECTIVE AS OF DECEMBER 1, 2004
(Agreement)
between
METROPOLITAN LIFE INSURANCE COMPANY
(Cedent)
and
EXETER REASSURANCE COMPANY, LTD.
(Reinsurer)
The Agreement is hereby amended, as of June 30, 2007, to change the benefit
reimbursement pattern for the GMIB (Guaranteed Minimum Income Benefit) rider.
Therefore, the IBNARP (Income Benefit Net Amount At Risk Percentage) is defined
in Article IV, and Article I and VII, as well as Schedule B, are updated to
reflect this change:
1. The attached Article I, Scope of Agreement, amends and, as amended,
restates Article I, Scope of Agreement.
2. The attached Article IV, Net Amount at Risk, amends and, as amended,
restates Article IV, Net Amount at Risk.
3. The attached Article VII, Settlement of Claims, amends and, as
amended, restates Article VII, Settlement of Claims.
4. The attached Schedule B, Required Data and Suggested Data Layout,
amends and, as amended, restates Schedule B, Required Data and
Suggested Data Layout.
This Amendment No. 5 does not alter, amend or modify the Agreement other than as
set forth herein, and the terms and conditions of the Agreement, as amended
herein, continue in effect without other change.
In Witness whereof, the parties have caused this Amendment No. 5 to be signed in
duplicate counterparts as of the date first above written.
METROPOLITAN LIFE INSURANCE COMPANY
By: /s/ [signature illegible]
---------------------------------
Title: [title illegible]
------------------------------
EXETER REASSURANCE COMPANY, LTD.
By: /s/ [signature illegible]
---------------------------------
Title: President
------------------------------
1
ARTICLE I
SCOPE OF AGREEMENT
A. This Agreement shall be effective as of December 1, 2004. While this
Agreement continues in effect, the Cedent shall cede and the Reinsurer
shall accept, as indemnity cessions hereunder, Reinsured Contracts that are
issued by the Cedent on and after December 12, 2001.
B. Ceded Liabilities
1. Guaranteed Minimum Death Benefit and Earnings Preservation Benefit
The indemnity cession shall be the share of the MNAR (defined in
Article IV) that is generated, prior to the termination of the
Reinsurer's liability (defined in Article II), by the Guaranteed
Minimum Death Benefit ("GMDB") and Earnings Preservation Benefit
("EPB") provisions of the Reinsured Contracts, as specified in
Schedule A.
2. Guaranteed Minimum Income Benefit
The indemnity cession shall be the share of the annuity payments upon
annuitization that is generated prior to the termination of the
Reinsurer's liability (defined in Article II), by the Guaranteed
Minimum Income Benefit Rider (the "Income Program") provisions of the
Reinsured Contracts, as specified in Schedule A, multiplied by the
IBNARP (defined in Article IV).
3. Guaranteed Withdrawal Benefit
The indemnity cession shall be the share of the WBNAR (defined in
Article IV) that is generated prior to the termination of the
Reinsurer's liability (defined in Article II), by the Guaranteed
Withdrawal Benefit Rider (the "Withdrawal Program") provisions of the
Reinsured Contracts, as specified in Schedule A.
4. Guaranteed Minimum Accumulation Benefit
The indemnity cession shall be the share of the ABNAR (defined in
Article IV) that is generated prior to termination of the Reinsurer's
liability (defined in Article II) by the Guaranteed Minimum
Accumulation Benefit Rider (the "Accumulation" program) provisions of
the Reinsured Contracts, as specified in Schedule A.
C. This Agreement covers only the Cedent's contractual liability for reinsured
claims paid under variable annuity contract forms specified in Schedule A.
D. There are no aggregate or individual claim limits applicable to the
benefits ceded.
E. Spousal Continuances will be covered under this Agreement to the extent
provided by the insured contract.
2
ARTICLE IV
NET AMOUNT AT RISK
GMDB AND EPB
------------
A. The MNAR (Mortality Net Amount at Risk) for each variable annuity contract
ceded hereunder shall be equal to the following:
MNAR = VNAR + SCNAR + EEMNAR
in which:
VNAR (Variable Net Amount at Risk) = Maximum (a,b) multiplied by the
Reinsurer's Percentage (defined in Schedule A) in which:
a = (Contractual Death Benefit - Account Value) and
b = 0
SCNAR (Surrender Charge Net Amount at Risk) = Surrender Charges multiplied
by the Reinsurer's Percentage
EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = x% * Maximum
(a,b) multiplied by the Reinsurer's Percentage where:
x% varies by issue age and is as described in the Reinsurance
Contracts specified in Schedule A
a = (Contractual Death Benefit - Total Purchase Payments Not
Withdrawn)
b = 0
B. The death benefit and the surrender charges will be as described in the
variable annuity contract forms specified in Schedule A.
GMIB
----
C. The IBNAR (Income Benefit Net Amount at Risk) for each variable annuity
contract ceded hereunder shall be equal to the following:
(i) The Guaranteed Principal Adjustment as defined in the rider *
Reinsurer's Percentage if the Income Benefit contains a Guaranteed
Principal Option and the option is exercised; or
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(ii) IBNAR = Maximum [(IBB * (MAPR/SAPR) - Account Value), 0] *
Reinsurer's Percentage
D. The IBNARP (Income Benefit Net Amount at Risk Percentage) for each variable
annuity contract ceded hereunder shall be equal to the following:
IBNARP = IBNAR / [IBB * (MAPR/SAPR)]
where:
. IBB equals the INCOME BASE as defined in the rider;
. MAPR is the MINIMUM ANNUITY PURCHASE RATE from the GMIB Annuity Table
defined in the rider; and
. SAPR is the SETTLEMENT ANNUITY PURCHASE RATE per $1000 which is used
at time of annuitization for reinsurance claims settlement and shall
be equal to the fixed annuity purchase rate that the Cedent would
provide to an annuitant in the same class.
E. Premium taxes will be applied on a consistent basis between the MAPR and
SAPR to calculate the IBNARP and IBNAR.
F. The IBNARP and IBNAR for each contract ceded hereunder shall be calculated
as of the last day of each calendar month prior to the termination of
liability contingencies set forth in Article II.
GWB
---
G. The WBNAR (Withdrawal Benefit Net Amount at Risk) for each variable annuity
contract ceded hereunder shall be equal to the following:
Guaranteed Withdrawal Benefit:
WBNAR = Maximum [(GWB Benefit Base -Account Value), 0] * Reinsurer's
Percentage (defined in Schedule A).
Lifetime Guaranteed Withdrawal Benefit:
WBNAR = Maximum [(GWB Benefit Base - Account Value), 0] * Reinsurer's
Percentage (defined in Schedule A) + Present Value of any additional
Lifetime Payments * Reinsurer's Percentage
A claim is incurred when the Account Value equals zero and is paid out in
installments consistent with the reinsured contract.
4
GMAB
----
H. The ABNAR (Accumulation Benefit Net Amount at Risk) for each variable
annuity contract ceded hereunder shall be equal to the following:
ABNAR = Maximum [(GMAB Guaranteed Accumulation Amount - Account Value),0] *
Reinsurer's Percentage.
A claim is incurred at the maturity date of the GMAB rider if the GMAB
Guaranteed Accumulation Amount exceeds the Account Value.
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ARTICLE VII
SETTLEMENT OF CLAIMS
A. The Reinsurer shall indemnify the Cedent under this Agreement only for
benefit claims that the Cedent paid as contractually required under a
Reinsured Contract with respect to claims that occur on or after the
Effective Date.
B. In the event that the Cedent provides satisfactory proof of claim liability
to the Reinsurer, benefit claim settlements made by a Cedent and accepted
by the Reinsurer shall be unconditionally binding on the Reinsurer. The
Cedent shall report all approved benefit claims in bordereau including
cause of death, as available, in such format as may be agreed to from time
to time.
C. Within thirty (30) days after the end of each calendar month, the Cedent
shall notify the Reinsurer of the ceded contractual benefit claims paid in
respect of Reinsured Contracts in that month, based on the definition, set
forth in Article IV, and the Reinsurer shall indemnify the Cedent as
provided in Article VI for the ceded benefit claim liabilities.
D. In no event will the Reinsurer be liable for expense incurred in connection
with a dispute or contest arising out of conflicting or any other claims of
entitlement to Reinsured Contract proceeds or benefits.
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SCHEDULE B
REQUIRED DATA AND SUGGESTED DATA LAYOUT
(Page 1 of 3)
FIELD DESCRIPTION COMMENTS
Annuitant's ID: Last Name
First Name
Middle Name
Sex M or F
Date of Birth YYYYMMDD
Social Security No. / Social Insurance No.
Joint Annuitant's ID: Last Name If Applicable
First Name
Middle Name
Sex M or F
Date of Birth YYYYMMDD
Social Security No. / Social Insurance No.
Owner's ID: Last Name
First Name
Middle Name
Sex M or F
Date of Birth YYYYMMDD
Social Security No. / Social Insurance No.
Joint Owner's ID: Last Name If Applicable
First Name
Middle Name
Sex M or F
Date of Birth YYYYMMDD
Social Security No. / Social Insurance No.
Policy Number
Policy Issue Date YYYYMMDD
Policy Issue Status NI = True New Issue, SC = Spousal
Continuance, EX = 1035 Exchange
Tax Status Qualified (Q), or Non-qualified (N)
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SCHEDULE B
REQUIRED DATA AND SUGGESTED DATA LAYOUT
(PAGE 2 OF 3)
FIELD DESCRIPTION COMMENTS
GMDB/EEB SECTION (If applicable)
--------------------------------
Mortality Risk Definition Indicator AV = VNAR; CV = VNAR + SCNAR
Death Claim Trigger A = Annuitant, O = Owner, 1 = 1st to
die, 2 = 2nd to die (e.g., A2 = payable
upon death of second of joint
annuitants)
Current Ratchet Value If Applicable
Current Reset Value If Applicable
Current Rollup Value If Applicable
Current Return of Premium Value If Applicable
Minimum Guaranteed Death Benefit
Contract Death Benefit Greater of Account Value and Minimum
Guaranteed Death Benefit
Effective Date of the Rider
Account Value as of the Effective
Date of the Rider
Mortality Risk VNAR Max [Contractual Death Benefit -
SCNAR Account Value), 0]
EEMNAR Surrender Charge, if applicable
X% of Death Benefit less Net
Purchase Payments
Earnings Death Benefit less Net Purchase Payments
Earnings CAP X% of Net Purchase Payments
GMIB SECTION (If applicable)
----------------------------
GMIB Indicator Y = benefit elected, N = benefit not
elected, NA = not applicable
Income Benefit Elected 01 = option 1, 02 = option 2, etc.
Expiration of Waiting Period YYYYMMDD
GMIB Annuitization Date YYYYMMDD - actual date
Most Recent GMIB Step-up / Reset Date YYYYMMDD, if applicable
Cancellation Date YYYYMMDD, if applicable
Pricing Cohort Indicator
IBB Amount
GMIB IBNAR Amount Calculated using an individual life
annuity form with 10 years certain
Treasury Rate Used in IBNAR calculation
IBNARP
Annuity Payments Upon Annuitization
GWB SECTION (if applicable)
---------------------------
GWB Indicator Y = benefit elected, N = benefit not
elected, C = rider cancelled
GWB Election Date YYYYMMDD
Total-GWB-Benefit-Base-Amt
Total-GWB-Guar-Withdrl-Amt
Total-GWB-Xxx-Benefit-Pymnt
Total-GWB-Rem-Ann-Bnft-Pymnt
Tota-GWB-Rider-Charge
GWB-Optn-Reset-Date
Account Value Current total value
Surrender Charge If reinsured
Cumulative Deposits Total premiums
Cumulative Withdrawals Total withdrawals
Net Purchase Payments Total premiums less total withdrawals
(proportional adjustment)
Deposits made in quarter of death dollar value
Quota Share ceded percentage
8
SCHEDULE B
REQUIRED DATA AND SUGGESTED DATA LAYOUT
(PAGE 3 OF 3)
FIELD DESCRIPTION COMMENTS
Funding Vehicle Values:
-----------------------
"MorningStar" designations (US)
Aggressive Growth
Balanced
Corporate Bond
Government Bond
Growth
Growth and Income
High Yield Bond
International Bond
International Stock
Money Market
Specialty Fund
Fixed Account
Dollar Cost Averaging
Note: total of funding vehicles should equal account value.
Termination Information:
------------------------
Termination Date YYYYMMDD, If applicable
Reason for Termination Death (D), Annuitization (A), 1035
Exchange (X), GMIB Election (I), Other
(O).
Cause of Death If applicable. Use your Cause of Death
code, and provide translation
Summary Information: For reconciliation purposes (may be
-------------------- paper summary)
Total number of records Monthly aggregate information by GMIB
Design, GMAB Design, and Pricing Cohort
(if applicable)
Total of each dollar field Monthly aggregate information by GMIB
Design, GMAB Design, and Pricing Cohort
(if applicable)
Note: All values to nearest dollar
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