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REINSURANCE
AGREEMENT
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Between
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
and
Inspected By
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Date 12/23/92
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Doc. 921272/V52125
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CCN/Agmt. No. 3711 / 4
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[SPECIMEN]
TABLE OF CONTENTS
PAGE
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I. REINSURANCE COVERAGE 1
II. REINSURANCE LIMITS 3
III. PLACING REINSURANCE IN EFFECT 3
IV. COMPUTATION OF REINSURANCE PREMIUMS 4
V. REPORTING AND PAYMENT OF REINSURANCE PREMIUMS 5
VI. SETTLEMENT OF CLAIMS 7
VII. EXPERIENCE REFUNDS 9
VIII. PREMIUM TAX REIMBURSEMENT 10
IX. POLICY CHANGES 10
X. REINSTATEMENTS 10
XI. EXPENSES 10
XII. REDUCTIONS 10
XIII. INSPECTION OF RECORDS 11
XIV. INCREASE IN LIMIT OF RETENTION 11
XV. ERRORS 12
XVI. EXTENDED AND PAID-UP INSURANCE 12
XVII. ARBITRATION 13
XVIII. ADDITIONAL DATA 14
XIX. CHOICE OF LAW AND FORUM 14
XX. INSOLVENCY 14
XXI. INSOLVENCY OF LINCOLN 15
XXII. PARTIES TO AGREEMENT 16
XXIII. ASSIGNMENT OF REINSURANCE 16
XXIV. MISCELLANEOUS 16
XXV. EXECUTION AND DURATION OF AGREEMENT 16
SCHEDULES
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SUBJECT REINSURANCE SCHEDULE 18
RETENTION SCHEDULE 19
LIMITS SCHEDULE 20
ADMINISTRATIVE FORMS SCHEDULE 21
PREMIUM SCHEDULE 22
EXPERIENCE REFUND SCHEDULE 23
R E I N S U R A N C E A G R E E M E N T
between
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
of
Wilmington, Delaware,
hereinafter referred to as the "REINSURED," and
of
hereinafter referred to as the "________."
I. REINSURANCE COVERAGE
A. On the basis hereinafter stated, the portion of the REINSURED'S
risk on a covered policy as specified in the Subject Reinsurance
Schedule and section C of this article shall be reinsured with the
_______ automatically, shall be submitted to the _______ on a
facultative basis, or shall be reinsured with the _______ as
continuations. A covered policy is a policy issued by the REINSURED
on a form listed on the Subject Reinsurance Schedule. A
continuation is a new policy that replaces a covered policy issued
earlier by the REINSURED ("original policy") or a change to an
existing covered policy resulting in additional coverage issued or
made either (1) pursuant to a contractual change privilege
contained in the original policy not requiring the submission of
new evidence of insurability or (2) as a non-contractual change
which meets the following requirements: (a) under the REINSURED'S
then current underwriting rules, the change does not require all of
the underwriting information the REINSURED would need to obtain if
the additional coverage were being obtained without reference to
the original policy, (b) the additional coverage is not subject to
a suicide exclusion period or contestable period which extends
beyond the periods stipulated in the original policy, and (c) does
not result in the payment of a commission equal to the first-year
commission for a separate policy having a face amount equal to the
additional coverage.
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B. Reinsurance liability shall begin prior to the issuance of individual
policies in the event that the REINSURED issues a binder document
obligating the REINSURED to provide mortality coverage on a group of
lives until the policy is issued. In that event subject to the terms
of that binder document and, in the case of facultative submissions
for reinsurance, to the REINSURED'S accepting the _______'S offer to
reinsure, the liability of the _______ shall begin simultaneously with
that of the REINSURED. Otherwise, reinsurance shall be in force and
binding when the policy issued directly by the REINSURED is placed in
force. In any event, the issuance and delivery of such insurance must
constitute the doing of business in a jurisdiction in which the
REINSURED was properly licensed before reinsurance shall be in force.
C. Life reinsurance under this Agreement shall be term insurance for the
amount at risk. The amount at risk shall generally be calculated as
the Reinsurance Proportion, as defined in the Subject Reinsurance
Schedule, of the death benefit under both the underlying policy and
any term insurance rider attached thereto, less the cash value; such
difference taken to the nearest dollar. The exact amount at risk shall
be developed consistent with the REINSURED'S calculation of the amount
at risk on the direct policy. However, the maximum amount of risk at
the time the policy is issued shall be as stated in the Limits
Schedule.
D. If the REINSURED issues a policy as a continuation of a policy
reinsured under this Agreement, reinsurance of the continuation shall
continue with the _______. Such reinsurance shall be maintained in
effect under this Agreement.
E. The amount of reinsurance under this Agreement shall be maintained in
force without reduction so long as the amount of insurance carried by
the REINSURED on the life remains in force without reduction, except
as provided in the "PAYMENT OF REINSURANCE PREMIUMS" and "INCREASE IN
LIMIT OF RETENTION" articles.
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II. REINSURANCE LIMITS
A. If the following requirements are met, reinsurance may be ceded
automatically under this Agreement in amounts not to exceed those
specified in the Limits Schedule.
(1) The REINSURED shall retain its limit of retention.
(2) The REINSURED has not made facultative application for
reinsurance of the current application.
(3) The policy is issued in accordance with the REINSURED'S
Guaranteed Issue Guidelines and Procedures.
(4) The policy is not a continuation.
B. If the requirements in section A of this article are not met or if
the REINSURED prefers to do so, it may make an application for
reinsurance under this Agreement on a facultative basis for policies
specified in the Subject Reinsurance Schedule other than
continuations. The REINSURED may, at its option, also make
application for reinsurance under this Agreement on a facultative
basis for other policies.
C. The _______ shall have no liability under facultative applications
for reinsurance unless the REINSURED has accepted the ________'S offer
to reinsure.
D. Continuations shall be reinsured under this Agreement only if the
original policy was reinsured with the _______ under this Agreement.
The basis for reinsurance of the new policy under this Agreement
shall be determined in accordance the "REINSURANCE COVERAGE" article.
Continuations shall be ceded on an automatic basis. Reinsurance
premiums on the new policy shall be determined in accordance with the
Premium Schedule.
III. PLACING REINSURANCE IN EFFECT
A. To effect reinsurance, the REINSURED shall, within thirty-one (31)
days after the end of each month, mail to the _______ a report for
new policies reinsured on either an automatic or facultative basis in
substantial accord with the Policy Detail Report of the
Administrative Forms Schedule.
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B. For facultative business, prior to effecting reinsurance as described
in section A of this article, the REINSURED must first have received
an offer of reinsurance from the _______. To obtain an offer of
reinsurance on a risk, the REINSURED must submit a facultative
application for reinsurance in substantial accord with the
Facultative Application of the Administrative Forms Schedule. Upon
receipt of such application, the _______ shall immediately examine
the papers and shall notify the REINSURED of its underwriting action
within five (5) business days.
C. All facultative offers of reinsurance made by the _______ under this
Agreement shall, unless otherwise terminated by the _______,
terminate on (a) the date the _______ receives notice from the
REINSURED of its withdrawal of its application and (b) the later of
(i) the date one hundred and twenty (120) days after the date the
offer was made by the _______ and (ii) the date specified in the
_______'S approval of a written request from the REINSURED to grant
an extension of the offer.
IV. COMPUTATION OF REINSURANCE PREMIUMS
A. The monthly reinsurance premium to be paid to the _______ for life
reinsurance shall be the appropriate premium rate from the schedule
of premiums in the Premium Schedule applied to the appropriate amount
which is reinsured. This reinsurance premium shall be determined as
of each policy's monthiversary date immediately following the
deduction of the cost of insurance charge from any accumulated fund
by the REINSURED.
B. Reinsurance premiums shall be paid, as stated in section A of this
article, without regard to the manner of payment stipulated in the
policy issued by the REINSURED.
C. For technical reasons relating to the uncertain status of deficiency
reserve requirements by the various state insurance departments, in
the event deficiency reserves must be established, or increased with
respect to policies reinsured under this Agreement, the REINSURED
shall pay _______ an amount equal to the Reinsurance Proportion of the
increase in the total deficiency reserves for the calendar year within
thirty (30) days of the close of such year. If deficiency
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reserves thereafter decrease, _______ shall pay the REINSURED the
Reinsurance Proportion of such decrease within thirty-one (31) days of the
close of the calendar year in which the decrease occurs.
V. REPORTING AND PAYMENT OF REINSURANCE PREMIUMS
A. The REINSURED shall send the _______ within thirty-one (31) days of the
close of each month a Policy Detail Report, a Summary Premium Report, and
a Policy Exhibit in substantial accord with the appropriate form in the
Administrative Forms Schedule. The Policy Detail Report and the Summary
Premium Report shall show separately (a) the initial reinsurance premiums
for all reinsured policies issued in the preceding month for which the
REINSURED'S records have been completed, (b) the balance of first-year
reinsurance premiums on all reinsured policies which became due on each
monthiversary in the preceding month, and (c) all renewal reinsurance
premiums on all reinsured policies which became due each monthiversary in
the preceding month. Amounts due under section C of the "COMPUTATION OF
REINSURANCE PREMIUMS" article, section E of this article, and the
"EXPERIENCE REFUNDS" article shall also be payable as stated in those
provisions and shall also be included in the Summary Premium Report for
the month in which they become due.
B. The reinsurance premium due the _______ shall accompany such report; if
the amount is due the REINSURED, the _______ shall remit such amount to
the REINSURED within thirty-one (31) days of receipt of the report.
Premiums for reinsurance hereunder are payable at the Home Office of the
_______ or any other location specified by the _______. Amounts due the
REINSURED are payable at the Home Office of the REINSURED or at any
other location specified by the REINSURED.
C. The payments of reinsurance premiums in accordance with the provisions of
the preceding section shall be a condition precedent to the liability of
the _______ under reinsurance covered by this Agreement. In the event that
reinsurance premiums are not paid as provided in the preceding section,
the _______ shall have the right to terminate the reinsurance
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under all policies having reinsurance premiums in arrears. If the _______
elects to exercise its right of termination, it shall give the REINSURED
thirty days' notice of its intention to terminate such reinsurance. If all
reinsurance premiums in arrears, including any which may become in arrears
during the thirty-day period, are not paid before the expiration of such
period, the _______ shall thereupon be relieved of future liability under
all reinsurance for which premiums remain unpaid. Policies on which
reinsurance premiums subsequently fall due will automatically terminate if
reinsurance premiums are not paid when due as provided in Section 8 of this
article. The reinsurance so terminated may be reinstated at any time within
sixty days of the date of termination upon payment of all reinsurance
premiums in arrears; but, in the event of such reinstatement, the _______
shall have no liability in connection with any claims incurred between the
date of termination and the date of reinstatement of the reinsurance. The
_______'S right to terminate reinsurance as herein provided shall be
without prejudice to its right to collect premiums for the period
reinsurance was in force prior to the expiration of the thirty-day notice
period.
D. Any payment which either the REINSURED or the _______ shall be obligated to
pay to the other may be paid net of any amount which is then due and unpaid
under this Agreement.
E. Failure to pay amounts related to deficiency reserves due under section C
of the "COMPUTATION OF REINSURANCE PREMIUMS" article or amounts due under
the "EXPERIENCE REFUNDS" article, because of a dispute as to the amount
due, shall not result in a termination of reinsurance. If such a dispute
cannot be resolved through normal business communication, the dispute shall
be submitted to arbitration in accordance with the "ARBITRATION" article.
Failure to pay such amounts for any reason other than because of a dispute
as to the amount due (and other than the insolvency of the REINSURED as
provided for in the "INSOLVENCY" article) shall result in a termination of
all reinsurance under this Agreement. To effect such termination, the party
to whom the amount is due shall give the other party a thirty (30) day
notice of its intent to
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terminate. If all amounts are not paid prior to the end of the notice
period, the reinsurance shall terminate effective the date such amount
became due. The reinsurance so terminated may be reinstated with sixty
(60) days of this date of termination upon payment of all amounts in
arrears; but, in the event of such reinstatement, the _______ shall
have no liability in connection with any claims incurred between the
date of termination and the date of reinstatement of the reinsurance.
The _______'S right to terminate reinsurance as herein provided shall
be without prejudice to its right to collect premiums for the period
reinsurance was in force prior to the expiration of the thirty-day
notice period. In the event the Agreement is terminated in accordance
with this section, any amounts due to the REINSURED plus any unearned
reinsurance premium less any amounts due _______ shall be paid to the
REINSURED. If amounts due _______ exceed the amounts due the REINSURED
plus any unearned reinsurance premiums, such excess amount shall be
paid to _______. Any termination payment shall be paid within sixty
(60) days of the effective date of the termination.
F. The REINSURED shall within thirty-one (31) days of the close of each
quarter (fifteen (15) days at year-end) send _______ a Quarterly
Reserve Report.
VI. SETTLEMENT OF CLAIMS
A. The REINSURED shall give the _______ prompt notice of any claim
submitted on a policy reinsured hereunder and prompt notice of the
instigation of any legal proceedings in connection therewith. Copies of
proofs or other documents bearing on such claim or proceeding shall
be furnished to the _______ when requested.
B. With respect to the administration, negotiation, payment, denial, or
settlement of any claim or legal proceeding, the REINSURED shall act
with good faith and in accord with its standard practices applicable to
all claims, whether reinsured or not. _______ shall pay, at its Home
Office, its share of
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net reinsurance liability upon receiving proper evidence of the
REINSURED'S having settled with the claimant. Payment of net
reinsurance liability on account of death or dismemberment shall be
made in one lump sum.
C. Neither _______ nor its agents or employees shall at any time
independently investigate, negotiate, or attempt to settle any claims
made upon the REINSURED for policy benefits.
D. If the REINSURED should contest or compromise any claim or proceeding
and the amount of net liability thereby be reduced, or if at any time
the REINSURED should recover monies from any third party in
connection with or arising out of any claim reinsured by the _______,
the _______'S reinsurance liability shall be reduced or the _______
shall share in the recovery, as the case may be, in the proportion
that the net liability of the _______ bore to the total net liability
existing as of the occurrence of the claim. As used in this section,
"recovery" shall include, but not be limited to, settlements,
judgments, awards and insurance payments of any kind.
E. Any unusual expenses incurred by the REINSURED in defending or
investigating a claim for policy liability or in taking up or
rescinding a policy reinsured hereunder shall be participated in
by the _______ in the same proportion as described in section D,
above.
F. In no event shall the following categories of expenses or liabilities
be considered, for purposes of this Agreement, as "unusual expenses"
or items of "net reinsurance liability:"
(1) routine investigative or administrative expenses;
(2) expenses incurred in connection with a dispute or contest
arising out of conflicting claims of entitlement to policy
proceeds or benefits which the REINSURED admits are payable;
(3) expenses, fees, settlements, or judgments arising out of or
in connection with claims against the REINSURED for punitive
or exemplary damages;
(4) expenses, fees, settlements, or judgments arising out of or
in connection with claims made against the REINSURED and
based on alleged or actual bad faith, failure to exercise
good faith, or tortious conduct.
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G. _______ shall not be liable for any extra contractual, punitive, or
exemplary damages, penalties, attorney's fees, or interest imposed
automatically by statute, unless it breaches the prohibition set
forth in section C, above.
H. In the event that the amount of insurance provided by a policy or
policies reinsured hereunder is increased or reduced because of a
misstatement of age or sex established after the death of the insured,
the net reinsurance liability of the _______ shall increase or reduce
in the proportion that the net reinsurance liability of the _______
bore to the sum of the net retained liability of the REINSURED and
the net liability of other reinsurers immediately prior to the
discovery of such misstatement of age or sex. Reinsurance policies in
force with the _______ shall be reformed on the basis of the adjusted
amounts, using premiums and reserves applicable to the correct age
and sex. Any adjustment in reinsurance premiums shall be made without
interest.
I. The _______ shall refund to the REINSURED any reinsurance premiums,
without interest, unearned as of the date of death of the life
reinsured hereunder.
J. If the REINSURED pays interest from a specified date, such as the
date of death of the insured, on the contractual benefit of a policy
reinsured under this Agreement, the _______ shall indemnify the
REINSURED for the _______'S share of such interest. Interest paid by
the _______ under this section shall be computed at the same rate and
commencing as of the same date as that paid by the REINSURED. The
computation of interest paid by the _______ under this section shall
cease as of the earlier of (1) the date of payment of the _______'S
share of reinsurance liability and (2) the date of termination of the
period for which the REINSURED has paid such interest.
VII. EXPERIENCE REFUNDS
Reinsurance hereunder shall be eligible for experience refunds as described
in the Experience Refund Schedule.
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VIII. PREMIUM TAX REIMBURSEMENT
The _______ shall not reimburse the REINSURED for any taxes the latter
may be required to pay with respect to reinsurance hereunder.
IX. POLICY CHANGES
If a change is made in the policy issued by the REINSURED to the insured
which affects reinsurance hereunder, the REINSURED shall notify the
_______ of such change on the first report submitted to _______ in
accordance with section A of the "PAYMENT OF REINSURANCE PREMIUMS"
article following the change in the policy.
X. REINSTATEMENTS
If a policy reinsured hereunder lapses for nonpayment of premium and is
reinstated in accordance with its terms and the rules of the REINSURED,
the _______ shall automatically reinstate its reinsurance under such
policy. The REINSURED shall notify _______ of the reinstatement on the
first report submitted to _______ in accordance with section A of the
"PAYMENT OF REINSURANCE PREMIUMS" article following the reinstatement of
the original policy. The REINSURED shall pay the _______ all reinsurance
premiums in arrears in connection with the reinstatement with interest at
the same rate and in the same manner as the REINSURED received under its
policy.
XI. EXPENSES
The REINSURED shall bear the expense of all medical examinations,
inspection fees, and other charges incurred in connection with the
original policy.
XII. REDUCTIONS
A. If a portion of the insurance issued by the REINSURED on a policy
reinsured hereunder is terminated, reinsurance of that policy
hereunder shall be reduced proportionally as hereinafter provided.
The reduction in reinsurance shall be applied only to the
reinsurance of the specific policy under which insurance
terminated. The reinsurance of the _______ shall be reduced by an
amount which is the same proportion of
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the amount of reduction so applied as the reinsurance of the _______
on the policy bore to the total reinsurance of the policy.
B. The _______ shall return to the REINSURED any basic life reinsurance
premiums, without interest thereon, paid to the _______ for any
period beyond the date of reduction of reinsurance hereunder.
XIII. INSPECTION OF RECORDS
The _______ shall have the right at any reasonable time to inspect, at the
office of the REINSURED, all books and documents relating to the
reinsurance under this Agreement.
XIV. INCREASE IN LIMIT OF RETENTION
A. The REINSURED may increase its limit of retention and may elect,
subject to the other provisions of this article, to; (1) continue
unchanged reinsurance then in force under this Agreement or (2) make
reductions in reinsurance then in force under this Agreement. The
increased limit of retention shall be effective with respect to new
reinsurance on the date specified by the REINSURED subsequent to
written notice to the _______. Such written notice shall specify the
new limit of retention, the effective date thereof, and the election
permitted by the first sentence of this section. If the REINSURED
makes election (2), the amount of reinsurance on all policies
eligible for recapture shall be uniformly reduced, as indicated by
the REINSURED, except as hereinafter provided, subject to a recapture
fee payable to _______ of 50% of annualized premium at the time of
recapture which would have been payable to _______ absent recapture.
B. No reduction shall be made in the amount of any reinsurance policy
unless the REINSURED holds the recaptured amounts at its own risk
without benefit of any proportional or nonproportional reinsurance
other than catastrophe accident reinsurance. No reduction shall be
made in any class of reinsurance fully reinsured. The plan, age, and
mortality classification at issue shall be used to determine the
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REINSURED'S new retention on any life on which reinsurance policies are
reduced in accordance with the provisions of this article.
C. The reduction in each reinsurance policy shall be effective upon the
reinsurance renewal date of that policy first following the effective
date of the increased limit of retention or upon the tenth reinsurance
renewal date of the reinsurance policy, if later.
D. In the event the REINSURED overlooks any reduction in the amount of a
reinsurance policy which should have been made on account of an increase
in the REINSURED'S limit of retention, the acceptance by the _______ of
reinsurance premiums under such circumstances and after the effective
date of the reduction shall not constitute or determine a liability on
the part of the _______ for such reinsurance. The _______ shall be
liable only for a refund of premiums so received, without interest.
XV. ERRORS
If either the REINSURED or the _______ shall fail to perform an obligation
under this Agreement and such failure shall be the result of an inadvertent
error on the part of the REINSURED or the _______, such error shall be
corrected by restoring both the REINSURED and the _______ to the positions
they would have occupied had no such error occurred. Any pattern of failing
to perform to customary standards and usual practices shall not be defined
as an error. For purposes of this Agreement, errors by the REINSURED
relating to the original placement of reinsurance which generate
liabilities in excess of the automatic limits of this Agreement shall not
be borne by _______.
XVI. EXTENDED AND PAID-UP INSURANCE
A. If a policy reinsured hereunder lapses and extended or paid-up insurance
is granted in accordance with its provisions, the REINSURED shall notify
the _______ by means of the next billing statement. The _______ shall
share in any adjustment in amount in the proportion that the amount of
reinsurance of the _______ on that policy bears to the total amount of
that
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policy retained by the REINSURED and reinsured with other reinsurers.
Continuing amounts of reinsurance hereunder less than $1,000 shall be
canceled.
B. The reinsurance premium shown on the billing statement shall be
computed on the basis of the reinsurance premiums applicable to the
policy prior to the change.
XVII. ARBITRATION
It is the intention of the REINSURED and the _______ that the customs and
practices of the insurance and reinsurance industry shall be given full
effect in the operation and interpretation of this Agreement. Therefore,
the arbitrators shall base their decision on the terms and conditions of
this Agreement plus, as necessary, on the customs and practices of the
insurance and reinsurance industry rather than solely on a strict
interpretation of the applicable law. The parties agree to act in all
things with the highest good faith.
(1) Any controversy or claim arising out of or relating to this
Agreement shall be settled by arbitration.
(2) There must be three arbitrators who shall be officers of life
insurance companies other than the contracting companies or their
subsidiaries or affiliates. Each of the contracting companies shall
appoint one of the arbitrators and these two arbitrators shall
select the third.
In the event either contracting company is unable to choose an
arbitrator within thirty (30) days after the other 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 (30) days following
their appointment, each arbitrator shall nominate three candidates
within ten (10) days thereafter, two of whom the other shall
decline, and the decision shall be made by drawing lots.
(3) Arbitration must be conducted in accordance with the Commercial
Arbitration Rules of the American Arbitration Association which
shall be in effect on the date of delivery of demand for
arbitration.
(4) Each contracting company must pay part of the arbitration expenses
as allocated by the arbitrators.
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(5) The award agreed by the arbitrators shall be final, and
judgment may be entered upon it in any court having
jurisdiction.
XVIII. ADDITIONAL DATA
In the event that state law or regulation relating to this Agreement
shall require either the REINSURED or _______ to obtain information in
writing from the other in order to credit reserves or any unallocated
liability for purposes of any quarterly or annual statement, the other
shall provide such information within fifteen (15) days of the end of
the period for which that information is required in the form required
or fifteen (15) days from the date of the request, whichever is later.
XIX. CHOICE OF LAW AND FORUM
New York law shall govern the terms and conditions of the Agreement. In
the case of an arbitration, the arbitration hearing shall take place in
New York, New York, and New York law shall control except as provided in
the "ARBITRATION" article.
XX. INSOLVENCY
A. In the event of the insolvency of the REINSURED, all reinsurance
shall be payable directly to the liquidator, receiver, or statutory
successor of said REINSURED, without diminution because of the
insolvency of the REINSURED.
B. In the event of the insolvency of the REINSURED, the liquidator,
receiver, or statutory successor shall give the _______ written
notice of the pendency of a claim on a policy reinsured within a
reasonable time after such claim is filed in the insolvency
proceeding. During the pendency of any such claim, the _______ may
investigate such claim and interpose, in the name of the REINSURED
(its liquidator, receiver, or statutory successor), but at its own
expense, in the proceeding where such claim is to be adjudicated,
any defense or defenses which the _______ may deem available to the
REINSURED or its liquidator, receiver, or statutory successor.
C. The expense thus incurred by the _______ shall be chargeable,
subject to court approval, against the REINSURED as part of the
expense of liquidation to the extent of a proportionate
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share of the benefit which may accrue to the REINSURED solely as a
result of the defense undertaken by the _______. Where two or more
reinsurers are participating in the same claim and a majority in
interest elect to interpose a defense or defenses to any such claim, the
expense shall be apportioned in accordance with the terms of the
reinsurance agreement as though such expense had been incurred by the
REINSURED.
D. 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 REINSURED or the _______ with respect to this Agreement or
with respect to any other claim of one party against the other are
deemed mutual debts or credits, as the case may be, and shall be set
off, and only the balance shall be allowed or paid.
XXI. INSOLVENCY OF _______
A. In the event of insolvency of _______, as determined by the Department
of Insurance responsible for such determination, all reinsurance ceded
under this Agreement may be completely recaptured by the REINSURED,
subject to the following termination charges, effective on the date
immediately prior to the earlier of: _______'S becoming insolvent or the
date of such determination by said Department of Insurance.
B. If the REINSURED elects to terminate reinsurance as provided herein, the
REINSURED shall pay _______ an early termination charge; on each policy
on which reinsurance is terminated, within ninety (90) days following
notice to the REINSURED of _______'S insolvency, based on the following
percentages of the current cost of insurance (current premiums) rates
charged the insured:
Percentage of
Cost of Insurance
Termination Date or (Current Premium)
Policy's First Anniversary %
Policy's Second Anniversary
Policy's Third Anniversary
Policy's Fourth Anniversary
Policy's Fifth Anniversary or Later
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XXII. PARTIES TO AGREEMENT
This is an agreement for indemnity reinsurance solely between the
REINSURED and the _______. The acceptance or reinsurance hereunder shall
not create any right or legal relation whatever between the LINCOLN and
the insured or the beneficiary under any policy reinsured hereunder.
XXIII. ASSIGNMENT OF REINSURANCE
If the REINSURED proposes to sell, assumption reinsure or otherwise
assist in the transfer of the policies or risks that are reinsured under
this Agreement to any third party, it shall require that the third party
agree in writing to an assignment of all rights and obligations of the
REINSURED under this Agreement. _______ may object to any assignment that
would result in a material adverse economic impact to _______. If _______
objects to an assignment on this basis, the REINSURED and _______ shall
mutually agree on a termination charge which shall be paid by the
REINSURED to _______.
XXIV. MISCELLANEOUS
A. This Agreement represents the entire agreement between the REINSURED
and the _______ and supersedes, with respect to its subject matter,
any prior oral or written agreements between the parties.
B. No modification or waiver of any provision of this Agreement shall be
effective unless set forth in a written amendment to this Agreement
which is executed by both parties. A waiver shall constitute a waiver
only with respect to the particular circumstance for which it is given
and not a waiver of any future circumstance.
XXV. EXECUTION AND DURATION OF AGREEMENT
The provisions of this reinsurance agreement shall be effective with
respect to policies for which the date on which application was first
made to the REINSURED is on or after the fourth day of September, 1992,
but in no event shall this Agreement become effective unless and until it
has been duly executed by two officers of the _______ at its Home Office
in . This Agreement shall be unlimited as to its
duration but may be
-16-
terminated at any time, insofar as its pertains to the handling of new
reinsurance thereafter, by either party giving three months' notice of
termination in writing. The _______ shall continue to accept reinsurance during
the three months aforesaid and shall remain liable on all reinsurance granted
under this Agreement until the termination or expiry of the insurance reinsured.
IN WITNESS WHEREOF the said
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
of
Wilmington, Delaware,
and the said
of
have by their respective officers executed and delivered these presents in
duplicate on the dates shown below.
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
Signed at New York, N.Y.
--------------------
By /s/ Xxxxxx X. Xxxxxxxx
--------------------------
Title Vice President & Actuary
------------------------
Date 12/29/92
-------------------------
Signed at
By By
-------------------------- ----------------------
Date 12/23/92 Date 12/23/92
------------------------- ---------------------
SUBJECT REINSURANCE SCHEDULE
Insurance Subject to Reinsurance
and Portions of the Insurance to be Reinsured under this Agreement
A. Automatic Reinsurance
_______'S Reinsurance Proportion shall be fifty percent of the original
insurance on the REINSURED'S issues of the following plans
(1) underwritten on a guaranteed issue basis,
(2) bearing register dates in the range shown below, and
(3) to insureds having surnames beginning with the letters of the
alphabet shown below
and shall be ceded under this Agreement.
Dates Letters
Plan From Through From Through
Flexible Premium Life Insurance
Policy (Form 929-100) 09-04-92 -- A Z
Adjustable Term to Age 95
Rider (Form 929-140) 09-04-92 -- A Z
Policy Endorsement
(Form 8440-92) 09-04-92 -- A Z
B. Facultative Reinsurance
The policy forms subject to automatic reinsurance or other policy forms may
also be submitted to the _______ for consideration on a facultative basis.
The amount of the original insurance reinsured on a facultative basis under
this Agreement shall be mutually agreed between the REINSURED and the _______
on a case by case basis.
C. Continuations
Continuations to the insurance specified above, as defined in the
"REINSURANCE COVERAGE" article, shall be ceded under this Agreement provided
the original policy was reinsured with the _______ under this Agreement. The
amount of reinsurance and reinsurance premiums shall be determined in
accordance with the "REINSURANCE COVERAGE" article, the "REINSURANCE LIMITS"
article, and the Premium Schedule.
-18-
AMENDMENT
to the Risk Premium Reinsurance Agreement (the "Agreement")
effective September 4, 1992, between
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION of Wilmington, Delaware,
hereinafter referred to as the "REINSURED,"
and
of
hereinafter referred to as "______________."
1. It is hereby agreed that the REINSURED'S place of domicile became
Newark, Delaware, during 1996.
2. On and after the fifteenth day of December, 1998, the retention limit of
the REINSURED shall be that shown in the revised Retention Schedule, attached
hereto. This retention shall apply to reinsurance ceded after the effective date
hereof and to existing reinsurance ceded before the effective date hereof in
accordance with the "INCREASE IN LIMIT OF RETENTION" article of the Agreement of
which this amendment is a part.
3. No new reinsurance shall be ceded under the Agreement on or after the
first day of January, 2001, except for reinsurance of continuations of policies
reinsured with _______ as described in the Subject Reinsurance Schedule,
attached hereto, to plans now or in the past the subject of the Agreement. The
premium for such continuations shall be as described in the Agreement.
4. _______'S Reinsurance Proportion under the Agreement on each policy's
first month-iversary occurring on or and after the first day of January, 2001,
shall be specified in the Subject Reinsurance Schedule, attached hereto.
5. Effective with each policy's first month-iversary occurring on or after
the first day of January, 2001, the retention limit of the REINSURED shall be
that shown in the revised Retention Schedule, attached hereto. This retention
shall apply to existing reinsurance ceded before the effective date hereof in
accordance with the "INCREASE IN LIMIT OF RETENTION" article of the Agreement of
which this amendment is a part.
Page 1
6. Effective with each policy's first month-iversary occurring on or after
the first day of January, 2001, the REINSURED may cede and _______ shall accept
automatically increases to existing policies in amounts of reinsurance not to
exceed those described in the Limits Schedule, attached hereto.
7. _______ shall have no liability under facultative applications for
reinsurance covering increases to existing policies unless the REINSURED has
accepted _______'S offer to reinsure.
8. Effective with each policy's first month-iversary occurring on or after
the first day of January, 2001, the reinsurance percentages for the REINSURED'S
cost of insurance rates shall be as described in the Premium Schedule, attached
hereto, and shall apply to reinsurance ceded under the Agreement prior to the
first day of January, 2001. Reinsurance ceded on the basis of such premium rates
shall
(a) not be subject to a minimum cession,
(b) be eligible for experience refunds,
(c) not be eligible for production or persistency bonuses,
(d) not be eligible for premium tax reimbursement, and
(e) not be reduced as set forth in the "INCREASE IN LIMIT OF RETENTION"
article until it has been in force for at least ten years or, in the
case of continuations, until the number of years the original policy
and its continuation have been in force is at least equal to the
greater of ten years and the time period specified for reinsurance of
the original policy.
9. On and after the first day of January, 2001, for reinsurance ceded
before the effective date hereof, the Experience Refund Schedule under the
Agreement shall be replaced with the Experience Refund Schedule, attached
hereto.
10. Increase in coverage requests for Policies reinsured shall be
underwritten according to the guaranteed issue guidelines and limits in effect
at the time the increase in coverage is requested.
11. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
Page 2
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
Signed at New York, NY
-----------------------
By Xxxxxx Xxxxxx By Xxxxxx Xxxxxxxxx
----------------------------------- -----------------------------------
Title CVP & Actuary Title Associate Actuary
-------------------------------- ---------------------------------
Date 12/31/01 Date 12/31/01
--------------------------------- ----------------------------------
THE
Signed at
By By
----------------------------------- -----------------------------------
Date Dec 27, 2001 Date December 27, 2001
--------------------------------- ----------------------------------
SUBJECT REINSURANCE SCHEDULE
(Effective January 1, 2001)
Insurance Subject to Reinsurance
and Portions of the Insurance to be Reinsured under this Agreement
A. Automatic Reinsurance
_______'S Reinsurance Proportion shall be eighty percent (80%) of the
original insurance on the REINSURED'S issues of the following plans beginning
with each policy's first month-iversary occurring on or after the first day
of January, 2001.
(1) underwritten on a guaranteed issue basis;
(2) bearing individual policy dates in the range shown below; and
(3) to insureds having surnames beginning with the letters of the alphabet
shown below;
and shall be ceded under this Agreement.
Dates Letters
Plan from through from through
Flexible Premium Life Insurance Policy
(Form 929-100) 09-04-92 12-31-00 A Z
Adjustable Term to Age 95 Rider
(Form 929-140) 09-04-92 12-31-00 A Z
Policy Endorsement (Form 8440-92) 09-04-92 12-31-00 A Z
Corporate Sponsored Variable Universal
Life Policies (Form 796-40) 10-01-96 12-31-00 A Z
B. Facultative Reinsurance
The policy forms subject to automatic reinsurance or other policy forms may
also be submitted to the _______ for consideration on a facultative basis.
The amount of the original insurance reinsured on a facultative basis under
this Agreement shall be mutually agreed between the REINSURED and the _______
on a case by case basis.
C. Continuations
Continuations to the insurance specified above, as defined in the
"REINSURANCE COVERAGE" article, shall be ceded under this Agreement provided
the original policy was reinsured with the _______ under this Agreement. The
amount of reinsurance and reinsurance premiums shall be determined in
accordance with the "REINSURANCE COVERAGE" article, the "REINSURANCE LIMITS"
article, and the Premiums Schedule.
Page 4
