Common use of Contractual Increases Clause in Contracts

Contractual Increases. Reinsurance premium rates for contractual increases such as AIR and GIO will be at an issue age and duration basis of the original base amount. Increases as a consequence of the Company’s automatic increase option on its pension policies are discussed in Exhibit C-I. If an increase results in a rate band change, it is understood that the original base amount will be maintained on the original band rates, however the increased portion that crosses over to a higher band will be on the higher band rates.

Contractual Increases. Reinsurance premium rates for contractual increases such as AIR and GIO will be at an issue attained age and duration basis of the original base amountbasis. Increases as a consequence of the Company’s automatic increase option on its pension policies are discussed in Exhibit C-I. If an increase results in a rate band change, it is understood that the original base amount will be maintained on the original band rates, however the increased portion that crosses over to a higher band will be on the higher band rates.