DAC TAX AMENDMENT
This amendment between CENTURY LIFE OF AMERICA (referred to as Ceding Company)
and CONNECTICUT GENERAL LIFE INSURANCE COMPANY (referred to as Assuming
Company), collectively called the "Parties", hereby amends and becomes part of
all Reinsurance Agreement(s) between the Parties.
1. The attached DAC Tax Article, entitled IRC. Section 1.848-2(g)(8)
Election, is hereby added to the Agreement.
2. This Amendment does not alter, amend or modify the Reinsurance Agreement (s)
other than as stated in this Amendment. It is subject to all of the terms
and conditions of the Reinsurance Agreement(s) together with all Amendments
and Addendums.
In witness whereof, this amendment is signed in duplicate on the dates indicated
at the home office of each company.
CENTURY LIFE OF AMERICA
By /s/ Xxxxxx X. Xxxxxxxxxx
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Date Aug. 30, 1993
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CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By /s/ Signature
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Date Jul 29 1993, 19
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DAC TAX ARTICLE
IRC Reg. Section 1.848-2(g)(8) Election
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1. The Parties hereby make an election pursuant to Internal Revenue Code
Regulation Section 1.848-2(g)(8). This election shall be effective
for all taxable years for which the Reinsurance Agreement remains in effect
commencing with the year ending December 31, 1991.
2. The terms used in this Addendum are defined by reference to Regulation
Section 1.848-2 promulgated on December 28, 1992.
3. The Party with net positive consideration for the reinsurance agreement for
each taxable year will capitalize specified policy acquisition expenses
with respect to the reinsurance agreement without regard to the general
deductions limitation of Section 848 ( c) (1) of the Internal Revenue Code
of 1986, as amended.
4. The Parties agree to exchange information pertaining to the amount of net
consideration under the reinsurance agreement each year to ensure
consistency. To achieve this, the Ceding Company shall provide the Assuming
Company with a schedule of its calculation of the net consideration for all
reinsurance agreements in force between them for a taxable year by no later
than May 1 of the succeeding year (by June 15 for tax year 1992). The
Assuming Company shall advise the Ceding Company if it disagrees with the
amounts provided by no later than May 31 (July 15 for 1992), otherwise the
amounts will be presumed correct and shall be reported by both parties in
their respective tax returns for such tax year. If the Assuming Company
contests the Ceding Company's calculation of the net consideration, the
Parties agree to act in good faith to resolve any differences within thirty
(30) days of the date the Assuming Company submits its alternative
calculation and report the amounts agreed upon in their respective tax
returns for such tax year.
5. The Parties shall attach to their respective 1992 federal income tax
returns a schedule specifying that the joint election here in has been made
for this reinsurance agreement.
6. The Assuming Company represents and warrants that it is subject to U.S.
taxation under either Subchapter L or Subpart F of Part III of Subchapter N
of the Internal Revenue Code of 1986, as amended.
