AMENDMENT NO. 3 to the VARIABLE ANNUITY DBER REINSURANCE AGREEMENT Effective June 1, 2001 Between MERRILL LYNCH LIFE INSURANCE COMPANY (“CEDING COMPANY”) and ACE TEMPEST LIFE REINSURANCE LTD. (“REINSURER”)

Exhibit 7(c)(1)
Amendment No. 3
to the
DBER Reinsurance Agreement between MLLIC
and
ACE Tempest Life Reinsurance LTD.

AMENDMENT NO. 3

to the

VARIABLE ANNUITY DBER REINSURANCE AGREEMENT

Effective June 1, 2001

Between

▇▇▇▇▇▇▇ ▇▇▇▇▇ LIFE INSURANCE COMPANY
(“CEDING COMPANY”)

and

ACE TEMPEST LIFE REINSURANCE LTD.
(“REINSURER”)

Effective August 1, 2008, this Amendment is hereby attached to and becomes a part of the above-described Reinsurance Treaty. It is mutually agreed that the Agreement will be updated to properly reflect fund changes and endorsements. In addition, it is mutually agreed that the Agreement will be amended to clarify the reinsurer approval process for retail fee increases and the addition of new riders with asset charges.

To effect these changes, the following provisions of the Agreement are hereby amended:

	•		Schedule ▇-▇, Contracts Subject to this Reinsurance Agreement is hereby replaced by the attached Schedule ▇-▇ chedule B-2, Subaccounts Subject to this Reinsurance Agreement is hereby replaced by the attached Schedule B-2

	•		Article III, Effective Date, Term, and Terminations is hereby replaced by the attached Article III.

	•		Article XVII — Notices is hereby replaced by the attached Article XVII

This amendment is effective only if fully executed on or before September 30, 2008.

▇▇▇▇▇▇▇ ▇▇▇▇▇ Life Insurance Company

ACE Tempest Life Reinsurance Ltd.

/s/ ▇▇▇▇▇▇▇ ▇. Rlieg

/s/ ▇▇▇▇ ▇▇▇▇▇

Name

▇▇▇▇▇▇▇ ▇. Rlieg

Name

▇▇▇▇ ▇▇▇▇▇

Title

Vice President

Title

SVP & Chief Pricing Officer

Date

July 11, 2008

Date

7/7/08

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SCHEDULE B-1

Contracts Subject to this Reinsurance Agreement


Form
Number*		Policy Description
ML-VA-001		Retirement Plus
ML-VA-002		Retirement Plus
ML-VA-003		Retirement Power
ML-VA-004		Retirement Optimizer
ML-048		Death Benefit Enhancement ▇▇▇▇▇
▇▇-049		Death Benefit Enhancement ▇▇▇▇▇
▇▇-051		Death Benefit Enhancement ▇▇▇▇▇
▇▇-052		Death Benefit Enhancement Rider

Other Endorsements
ML-077		GMIB Rider for Retirement Plus
ML-077-4		Annuity Payout Rates for GMIB Rider: Ret Plus
ML-077-4-UNI		Annuity Payout Rates for GMIB Rider: Ret Plus


*		Includes any state specific variation of the above-described forms as of the EFFECTIVE DATE and any subsequent state specific variation, if such subsequent state specific variation does not have any impact on the risk assumed by the REINSURER. The CEDING COMPANY shall notify the REINSURER of any state specific variation after the EFFECTIVE DATE which could have any impact on the risk assumed by the REINSURER and such variation shall be treated the same as a policy form change under Article IV, Section B, provided that the REINSURER shall not unreasonably refuse to approve such subsequent state specific variation.

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SCHEDULE B-2

Subaccounts Subject to this Reinsurance Agreement

Retirement Plus
BlackRock Variable Series Funds, Inc.
     BlackRock Balanced Capital ▇.▇.▇▇▇▇
     BlackRock Basic Value ▇.▇.▇▇▇▇
     BlackRock Total Return ▇.▇.▇▇▇▇
     BlackRock Money Market V..I..Fund
     BlackRock Fundamental Growth ▇.▇.▇▇▇▇
     BlackRock Global Allocation ▇.▇.▇▇▇▇
     BlackRock Global Growth ▇.▇.▇▇▇▇
     BlackRock Government Bond ▇.▇.▇▇▇▇
     BlackRock High Income ▇.▇.▇▇▇▇
     BlackRock S&P 500 Index ▇.▇.▇▇▇▇
     BlackRock International Value V.I. Fund
     BlackRock Large Cap Core ▇.▇.▇▇▇▇
     BlackRock Large Cap Growth V.I. Fund
     BlackRock Large Cap Value ▇.▇.▇▇▇▇
     BlackRock Value Opportunities ▇.▇.▇▇▇▇
     BlackRock Utilities and Telecommunications ▇.▇.▇▇▇▇
MLIG Variable Insurance Trust
     ▇▇▇▇▇▇/Lord ▇▇▇▇▇▇ Mid Cap Value Portfolio
     ▇▇▇▇▇▇/▇▇▇▇▇▇▇▇ Mid Cap Growth Portfolio
     ▇▇▇▇▇▇/Allianz NFJ Small Cap Value Portfolio
     ▇▇▇▇▇▇/▇▇ ▇▇▇▇▇▇ Small Cap Growth Portfolio
     ▇▇▇▇▇▇/Delaware Trend Portfolio
     ▇▇▇▇▇▇/Lord ▇▇▇▇▇▇ Affiliated Portfolio
     ▇▇▇▇▇▇/Allianz CCM Capital Appreciation Portfolio
AIM Variable Insurance Funds
     AIM ▇.▇.▇▇▇▇▇▇▇ Appreciation Fund
     AIM V.I.Premier Equity Fund
AllianceBerstein Variable Products Series Fund,Inc.
     Alliance Large Cap Growth Portfolio
     Alliance Global Technology Portfolio
American Century Variable Portfolios,Inc.
     VP International Fund
     VP Ultra Fund
▇▇▇▇▇ Variable Account Fund,Inc.
     ▇▇▇▇▇ Value Portfolio
Federated Insurance Series
     Federated Capital Appreciation Fund II
     Federated ▇▇▇▇▇▇▇▇ Fund II
MFS Variable Insurance Trust
     MFS Emerging Growth Series
PIMCO Variable Insurance Trust
     Total Return Portfolio
▇▇▇ ▇▇▇▇▇▇ Life Investment Trust
     ▇▇▇▇▇▇▇▇ Portfolio

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SCHEDULE B-2 (Continued)

Subaccounts Subject to this Reinsurance Agreement

Retirement Power and Retirement Optimizer
BlackRock Variable Series Funds, Inc.
     BlackRock Basic Value V.I. Fund
     BlackRock Total Return ▇.▇.▇▇▇▇
     BlackRock Fundamental Growth V.I. Fund
     BlackRock Government Income V.I, Fund
     BlackRock S&P 500 Index V.I. Fund
     BlackRock International Value V.I. Fund
     BlackRock Value Opportunities ▇.▇.▇▇▇▇
MLIG Variable Insurance Trust
     ▇▇▇▇▇▇/Delaware Trend Portfolio
     ▇▇▇▇▇▇/Lord ▇▇▇▇▇▇ Mid Cap Value Portfolio
     ▇▇▇▇▇▇/Lord ▇▇▇▇▇▇ Bond Debenture Portfolio
     ▇▇▇▇▇▇/Lord ▇▇▇▇▇▇ Affiliated Portfolio
     ▇▇▇▇▇▇/▇▇▇▇▇▇▇▇ Mid Cap Growth Portfolio
     ▇▇▇▇▇▇/Allianz NFJ Small Cap Value Portfolio
     ▇▇▇▇▇▇/Allianz CCM Capital Appreciation Portfolio
     ▇▇▇▇▇▇/▇▇ ▇▇▇▇▇▇ Small Cap Growth Portfolio
AIM Variable Insurance Funds
     AIM V.I. International Growth Fund
     AIM V.I. Core Equity Fund
AllianceBerstein Variable Products Series Fund, Inc.
     Alliance Growth and Income Portfolio
     Alliance Large Cap Growth Portfolio
American Century Variable Portfolios, Inc.
     VP Ultra Fund
▇▇▇▇▇ Variable Account Fund, Inc.
     ▇▇▇▇▇ Value Portfolio
Federated Insurance Series
     Federated Capital Appreciation Fund II
     Federated ▇▇▇▇▇▇▇▇ Fund II
MFS Variable Insurance Trust
     MFS Emerging Growth Series
PIMCO Variable Insurance Trust
     Total Return Portfolio
▇▇▇▇▇▇▇▇ Portfolios, Inc.
     ▇▇▇▇▇▇▇▇ Smaller-Cap Value Portfolio
▇▇▇ ▇▇▇▇▇▇ Life Investment Trust
     Strategic Growth Portfolio
     ▇▇▇▇▇▇▇▇ Portfolio

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ARTICLE III — EFFECTIVE DATE, TERM AND TERMINATION

This Agreement covers individual ANNUITY CONTRACTS issued by the CEDING COMPANY that:

	(i)		are identified by form in Schedule ▇-▇;

	(ii)		have elected no optional rider forms for which a retail fee is assessed other than those forms listed on Schedule ▇-▇;

	(iii)		have accounts invested in the investment funds listed in Schedule B-2;

	(iv)		are issued within the limits and rules described in Schedule C-l;

	(v)		are in compliance with all of the other terms and provisions of this Agreement;

	(vi)		have a RIDER ISSUE DATE on or after the EFFECTIVE DATE and prior to the date this Agreement ceases to cover new ANNUITY CONTRACTS; and

	(vii)		are ACTIVE CONTRACTS.

This Agreement will cease to cover new ANNUITY CONTRACTS issued by the CEDING COMPANY on the earlier of (i) May 31, 2004 or (ii) the date that the sum of all cumulative RETAIL ANNUITY PREMIUMS exceeds the limit provided in Schedule C-2, paragraph 3. For the purposes of this paragraph, RETAIL ANNUITY PREMIUMS for each INFORCE ANNUITY CONTRACT shall be the ACCOUNT VALUE as of the RIDER ISSUE DATE plus any RETAIL ANNUITY PREMIUMS deposited subsequent to the RIDER ISSUE DATE.

This Agreement will terminate with respect to each ANNUITY CONTRACT subject to it, as of the TERMINATION DATE.

The CEDING COMPANY shall have the option of terminating this Agreement for new business, existing business, or both, by giving ninety (90) days advance notice to the REINSURER, after the occurrence of any of the following:

	1.		REINSURER’S Standard and Poor’s Rating is reduced to a “BBB” or lower. REINSURER must report any adverse change in Standard and Poor’s Rating to CEDING COMPANY within fifteen (15) days of the change. Any notice of termination given by the CEDING COMPANY enabled by such rating reduction shall be deemed withdrawn if REINSURER’s Standard and Poor’s Rating is restored to a level higher than “BBB” during the 90 day notice period;

	2.		An order is entered appointing a receiver, conservator or trustee for management of REINSURER or a proceeding is commenced for rehabilitation, liquidation, supervision or conservation of REINSURER;

	3.		REINSURER’s U.S. GAAP surplus position is reduced to 75% or less of its U.S. GAAP surplus position as of December 31, 2000. The REINSURER must report such a reduction within fifteen (15) days after it occurs. The REINSURER’s

▇▇▇▇▇▇▇ ▇▇▇▇▇ Life and ACE Tempest Re DBER

surplus position as of December 31, 2000 is provided in Schedule H. Any notice of termination given by the CEDING COMPANY enabled by such surplus reduction shall be deemed withdrawn if REINSURER’s U.S. GAAP surplus position is restored to a level higher than 75% of its U.S. GAAP surplus position as of December 31, 2000 during the 90 day notice period.

The REINSURER shall have the option of terminating this Agreement for new business, existing business or both by giving ninety (90) days advance written notice to the CEDING COMPANY after the occurrence of any of the following:

	1.		The CEDING COMPANY fails to provide timely submissions of all material data required to be provided in accordance with Schedule G, provided that the REINSURER’s notice of termination identifies whether new contracts, existing contracts or both will be terminated and provided further that the REINSURER’s notice of termination shall be deemed withdrawn if the CEDING COMPANY, within 90 days after the date the REINSURER’s notice of termination is given, provides to the REINSURER all data submissions then in arrears.

	2.		The CEDING COMPANY fails to pay premium due on or before the REMITTANCE DATE. In the event that premium due is not paid by the REMITTANCE DATE, the REINSURER shall have the right to terminate this agreement by giving ninety (90) days advance notice of termination to the CEDING COMPANY. If all premiums in default and interest in accordance with Article III, paragraph F are received by the REINSURER within the ninety (90) day notice period, the Agreement will remain in effect and the notice of termination deemed withdrawn. If premium remains in default as of the close of the last day of the ninety (90) day notice period, the REINSURER’S liability for all risks reinsured associated with the defaulted premiums under this Agreement will terminate.

Except as otherwise provided herein, upon termination of this Agreement for existing business, the REINSURER shall have no reinsurance liability with respect to any ANNUITY CONTRACT. Notwithstanding termination of reinsurance as provided herein, the REINSURER shall continue to be liable to the CEDING COMPANY for all unpaid REINSURED CLAIMS and the CEDING COMPANY shall continue to be liable to the REINSURER for all unpaid MONTHLY REINSURANCE PREMIUMS earned by the REINSURER, under this Agreement until the date the Agreement is terminated. Any net amounts due from either party after termination are subject to a daily interest charge equal to 1/365 times the sum of (a) and (b), where (a) is the 3 month LIBOR rate on the preceding MONTHLY VALUATION DATE as published in the Wall Street Journal; and (b) is 1.00%. Interest is assessed from the REMITTANCE DATE until the date paid.

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ARTICLE XVII — NOTICES

All notices required to be given hereunder shall be in writing and shall be deemed delivered if personally delivered, sent via reputable overnight carrier, sent via facsimile with evidence of successful transmission, or dispatched by certified or registered mail, return receipt requested, postage prepaid, addressed to the parties as follows:

▇▇▇▇▇ ▇▇▇▇▇
Transamerica Capital Management
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Fax: (▇▇▇)▇▇▇-▇▇▇▇

With a copy to:
Transamerica Capital Management
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: TCM Legal Department
Fax: (▇▇▇)▇▇▇-▇▇▇▇

Chief Financial Officer
ACE Tempest Life Reinsurance Ltd.
▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇: (▇▇▇) ▇▇▇-▇▇▇▇ Fax: (▇▇▇) ▇▇▇-▇▇▇▇

Notice shall be deemed given on the date it is received in accordance with the foregoing. Any party may change the person and/or the address to which notices are to be sent by notifying the other party of such change of address in writing in accordance with the foregoing.

▇▇▇▇▇▇▇ ▇▇▇▇▇ Life and ACE Tempest Re DBER

AMENDMENT NO. 3 to the VARIABLE ANNUITY DBER REINSURANCE AGREEMENT Effective June 1, 2001 Between MERRILL LYNCH LIFE INSURANCE COMPANY (“CEDING COMPANY”) and ACE TEMPEST LIFE REINSURANCE LTD. (“REINSURER”)

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