AMENDMENT NO. 3 TO
AUTOMATIC REINSURANCE AGREEMENT
EFFECTIVE AS OF JANUARY 1, 2011
(Agreement)
between
METLIFE INVESTORS USA INSURANCE COMPANY
(Cedent)
and
METLIFE INSURANCE COMPANY OF CONNECTICUT
(Reinsurer)
The Agreement is hereby amended, as of April 1st, 2012, as follows:
1. The attached Article V, Reinsurance Premiums, amends and, as amended,
restates Article V, Reinsurance Premiums. This restated Article V
updates the Reinsurance Premium calculation for the Enhanced Death
Benefit Guaranteed Minimum Death Benefits.
This Amendment No. 3 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. 3 to be signed as
of the date first above written.
METLIFE INVESTORS USA INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxxx
--------------------------------
Name: Xxxxxxx Xxxxx
--------------------------------
Title: Vice President
--------------------------------
METLIFE INSURANCE COMPANY OF CONNECTICUT
By: /s/ Xxxxxxxxxxx Xxxxxx
--------------------------------
Name: Xxxxxxxxxxx Xxxxxx
--------------------------------
Title: Vice President and Actuary
--------------------------------
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ARTICLE V
REINSURANCE PREMIUMS
A. The total Reinsurance Premium for the business ceded hereunder is the sum
of the GMDB Reinsurance Premium, the EPB Reinsurance Premium, the GMIB
Reinsurance Premium, and the GWB Reinsurance Premium, each of which is
defined separately in this article.
B. The Reinsurance Premium rates and structure described above are subject to
change in accordance with the criteria described in Article XIV.
C. The annualized Reinsurance Premium rates expressed in terms of basis
points are set forth in Schedule B.
GMDB Reinsurance Premium
------------------------
D. For Guaranteed Minimum Death Benefits other than Enhanced Death Benefits,
the Cedent shall calculate, for each premium class, the Reinsurer's
Percentage of the average aggregate separate account value for the
reporting month. 1/12th of the annualized GMDB Reinsurance Premium rates
for that premium class shall be applied to this value to determine the
monthly Reinsurance Premium.
The average aggregate separate account value is calculated as the average
of the aggregate separate account value for Reinsured Contracts as of the
end of the previous month and the aggregate separate account value for
Reinsured Contracts as of the end of the current month.
E. For Enhanced Death Benefit Guaranteed Minimum Death Benefits, the Cedent
shall calculate, for each premium class, the Reinsurer's Percentage of the
average aggregate Death Benefit Base for the reporting month. 1/12th of the
annualized GMDB Reinsurance Premium rates for that premium class shall be
applied to this value to determine the monthly Reinsurance Premium.
The average aggregate Death Benefit Base is calculated as the average of
the aggregate Death Benefit Base as defined in the Reinsured Contracts as
of the end of the prior month and the aggregate Death Benefit Base as
defined in the Reinsured Contracts as of the end of the current month.
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EPB Reinsurance Premium
-----------------------
F. The Cedent shall calculate the Reinsurer's Percentage of the average
aggregate separate account value for the reporting month. 1/12th of the
annualized EPB Reinsurance Premium rate shall be applied to this value to
determine the monthly Reinsurance Premium.
The average aggregate separate account value is calculated as the average
of the aggregate separate account value for Reinsured Contracts as of the
end of the previous month and the aggregate separate account value for
Reinsured Contracts as of the end of the current month.
GMIB Reinsurance Premium
------------------------
G. The Cedent shall calculate, for each premium class, the Reinsurer's
Percentage of the average aggregate IBB value for the reporting month.
1/12th of the annualized GMIB Reinsurance Premium rate for that premium
class shall be applied to this value to determine the monthly Reinsurance
Premium.
The average aggregate IBB value is calculated as the average of the
aggregate IBB value for Reinsured Contracts as of the end of the previous
month and the aggregate IBB value for Reinsured Contracts as of the end of
the current month.
GWB Reinsurance Premium
-----------------------
H. For all Reinsured Contracts except for MetLife Growth & Guaranteed Income
Contracts, the Cedent shall calculate, for each premium class, the
Reinsurer's Percentage of the Guaranteed Withdrawal Amount for the
reporting month. 1/12th of the annualized GWB Reinsurance Premium rate for
that premium class shall be applied to this value to determine the monthly
Reinsurance Premium.
The Guaranteed Withdrawal Amount shall be equal to the sum of the
Guaranteed Withdrawal Amount as defined in the Reinsured Contracts as of
the end of the current month.
I. For MetLife Growth & Guaranteed Income Contracts, the Cedent shall
calculate, for each premium class, the Reinsurer's Percentage of the
average aggregate account value for the reporting month. 1/12th of the
annualized GWB Reinsurance Premium rate for that premium class shall be
applied to this value to determine the monthly Reinsurance Premium.
The average aggregate account value is calculated as the average of the
aggregate account value for Reinsured Contracts as of the end of the
previous month and the aggregate account value for Reinsured Contracts as
of the end of the current month.
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