Exhibit (g)(3)
AUTOMATIC AGREEMENT
between
IDS LIFE INSURANCE COMPANY
Minneapolis, Minnesota
(hereinafter called the CEDING COMPANY)
and
[name of reinsurance company]
[city and state of reinsurance company]
This Agreement is Effective April 1, 1990
TABLE OF CONTENTS
ARTICLE PAGE
------- ---------
I AUTOMATIC COVERAGE 1
II FACULTATIVE PROVISIONS 2
III DETERMINATION OF NET AMOUNT AT RISK 3
IV PREMIUMS 4
V SELF ADMINISTRATION 5
VI ERRORS AND OMISSIONS 7
VII EXPENSE OF ORIGINAL POLICY 8
VIII CHANGES IN RETENTION AND RECAPTURE PRIVILEGES 9
IX TERMINATIONS AND REDUCTIONS 10
X REINSTATEMENT, CONTINUATIONS, EXTENDED TERM AND REDUCED 11
PAID-UP INSURANCE
XI LIABILITY 12
XII CLAIMS 13
XIII ARBITRATION 14
XIV INSOLVENCY 16
XV RIGHT TO INSPECT 17
XVI DURATION OF AGREEMENT 18
XVII EXECUTION OF AGREEMENT 19
EXHIBIT
A RETENTION SCHEDULE
B POLICY PLANS REINSURED
C PREMIUMS
D LIMITS
Reinsurance required by the CEDING COMPANY will be assumed by [name of
reinsurance company] as described in the terms of this Agreement.
ARTICLE I
AUTOMATIC COVERAGE
A. Reinsurance hereunder will be ceded automatically by the CEDING COMPANY
through an Automatic Risk Pool. [name of reinsurance company]'S percentage
of participation in each risk ceded through this Pool will be as shown in
Exhibit D.
B. For each risk on which reinsurance is ceded, the CEDING COMPANY will
retain its full published retention at the time of issue, taking into
account both currently issued and previously issued policies.
C. The CEDING COMPANY may cede and [name of reinsurance company] will
automatically accept reinsurance, if all of the following conditions are
met for each life:
1. The CEDING COMPANY has retained its limit of retention as
shown in Exhibit A.
2. The amount does not exceed the automatic binding limits shown
in Exhibit D.
3. The sum of the amount of insurance already in force and
applied for on that life, in all companies, does not exceed
the Jumbo Limit as shown in Exhibit D.
4. The CEDING COMPANY has not made facultative application for
reinsurance of the current or prior applications on the same
life to [name of reinsurance company] or any other reinsurer.
5. The risk is underwritten in accordance with the CEDING
COMPANY'S normal underwriting rules and practices.
6. The Plan is listed in Exhibit B.
D. The CEDING COMPANY may automatically cede Waiver of Premium Disability
reinsurance in amounts not to exceed the amounts shown in Exhibit D.
Page 1
ARTICLE II
FACULTATIVE PROVISIONS
A. The CEDING COMPANY will have the option to submit any case facultatively
which it does not wish to cede automatically or which it may not cede
automatically under the provisions of Article I.
B. The CEDING COMPANY will send copies of the original applications, all
medical reports, inspection reports, attending physician's statement and
any additional information pertinent to the insurability of the risk.
C. The CEDING COMPANY will also notify [name of reinsurance company] of any
underwriting information requested or received after the initial request
for reinsurance is made.
D. On a timely basis, [name of reinsurance company] will submit a written
decision. In no case will [name of reinsurance company]'S offer on
facultative submissions be open after 120 days have elapsed from the date
of [name of reinsurance company]'S offer to participate in the risk.
Acceptance of the offer and delivery of the policy according to the rules
of the CEDING COMPANY must occur within 120 days of the final reinsurance
offer. Unless [name of reinsurance company] explicitly states in writing
that the final offer is extended, the offer will be automatically
withdrawn at the end of day 120.
E. Prior to acceptance by the CEDING COMPANY of an unconditional offer made
by [name of reinsurance company], [name of reinsurance company] will not
be liable for proceeds paid under the CEDING COMPANY'S conditional receipt
or temporary insurance agreement for risks submitted on a facultative
basis
Page 2
ARTICLE III
DETERMINATION OF NET AMOUNT AT RISK
A. For universal life and whole life plans, the reinsured net amount at risk
will equal the total policy net amount at risk less the CEDING COMPANY'S
retention at date of issue. For whole life, the policy net amount at risk
will be approximated as the face amount less 1/20th of the 20th year cash
value for each complete year the policy has been in force.
B. For term plans and Other Insured Riders, the reinsured net amount at risk
will equal the face amount less the CEDING COMPANY'S retention at date of
issue.
Page 3
ARTICLE IV
MONTHLY RENEWABLE TERM PREMIUMS
A. Plans of insurance listed in Exhibit B will be reinsured on a monthly
renewable term basis for the net amount at risk on that portion of the
policy which is reinsured with [name of reinsurance company].
B. Premiums for Life Reinsurance and reinsurance of Supplemental Benefits
will be based on the rates described in Exhibit C.
C. Premiums will be increased by any flat extra premium charged the insured
on the face amount initially reinsured.
D. There will be no premium tax reimbursement.
E. For technical reasons, the Life reinsurance rates cannot be guaranteed for
more than one year. However, [name of reinsurance company] anticipates
continuing to accept premiums on the basis of the rates as described in
Exhibit C for reinsurance ceded at these rates.
Page 4
ARTICLE V
SELF ADMINISTRATION
A. The CEDING COMPANY will administer the records for the reinsurance ceded
to [name of reinsurance company] under this agreement. The CEDING COMPANY
will furnish monthly statements to [name of reinsurance company] which
contain at least the following information:
1. A list of all premiums due for the current month, identifying
each policy and explaining the reasons for each premium
payment.
2. Premium subtotals adequate for [name of reinsurance company]
to use for its premium accounting.
3. A list of new business, terminations and changes for the
current month. For new business and changes, the CEDING
COMPANY must identify the reinsurance agreement and provide
information adequate for [name of reinsurance company] to
establish reserves, check retention limits and check premium
calculations.
4. Totals for inforce, new business, changes and each type of
termination, as of the end of the month. "Totals" refer to the
number of policies reinsured, amount at risk reinsured and
annualized reinsurance premiums.
In addition, the CEDING COMPANY must provide [name of reinsurance company]
with an inforce listing of reinsured business at least once a year. This
inforce listing must contain information adequate for [name of reinsurance
company] to audit its inforce records.
B. The monthly statements shall be furnished to [name of reinsurance company]
within thirty days following the close of each month and will be
accompanied by payment of any net amount due [name of reinsurance company]
as shown on the monthly statement. All premiums not paid within thirty
(30) days of the due date will be in default.
C. [name of reinsurance company] reserves the right to charge interest on a
monthly basis at an annual rate of [percentage] when:
1. Renewal premiums are not paid within sixty (60) days of the
due date.
2. Premiums for new business are not paid within one hundred
twenty (120) days of the effective date of the policy
Page 5
D. [name of reinsurance company] will have the right to terminate this
Agreement when premiums are in default by giving ninety (90) days written
notice of termination to the CEDING COMPANY. As of the close of the last
day of this ninety (90) day notice period, [name of reinsurance company]'S
liability for all risks reinsured under this agreement will terminate. The
first day of the ninety (90) day notice of termination under Section B of
this Article will be the day the notice is received in the mail by the
CEDING COMPANY or if the mail is not used, the day it is delivered to the
CEDING COMPANY. If all premiums in default are received within the ninety
(90) day time period, the Agreement will remain in effect.
E. Payments between the CEDING COMPANY and [name of reinsurance company] may
be paid net of any amount due and unpaid under all reinsurance agreements
between both parties.
Page 6
ARTICLE VI
ERRORS AND OMISSIONS
If either the CEDING COMPANY or [name of reinsurance company] fails to
perform an obligation under this Agreement, and this failure is shown to
be unintentional and the result of misunderstanding or oversight, both
companies will be restored to the positions they would have occupied had
the misunderstanding or oversight not occurred.
Page 7
ARTICLE VII
EXPENSE OF ORIGINAL POLICY
The CEDING COMPANY will bear the expense of all medical examinations,
inspection fees and other charges incurred in connection with the original
policy.
Page 8
ARTICLE VIII
CHANGES IN RETENTION AND RECAPTURE PRIVILEGES
A. If, at any time, the CEDING COMPANY changes its existing retention limits,
as shown in Exhibit A, written notice of the change will promptly be given
to [name of reinsurance company].
B. The CEDING COMPANY may apply the new limits of retention to existing
reinsurance and reduce and recapture reinsurance in force in accordance
with the following rules:
1. No recapture will be made unless reinsurance has been in force
[number] years.
2. Recapture will become effective on the policy anniversary date
following notification of the company's intent to recapture.
3. No recapture will be made unless the CEDING COMPANY retained
its maximum limit of retention for the plan, age and mortality
rating at the time the policy was issued. No recapture will be
allowed in any class of fully reinsured business or in any
classes of risks for which the CEDING COMPANY established
special retention limits less than the CEDING COMPANY'S
maximum retention limits for the plan, age and mortality
rating at the time the policy was issued.
4. If any reinsurance is recaptured all reinsurance eligible for
recapture under the provisions of this Article must be
recaptured.
5. If there is reinsurance in other companies on risks eligible
for recapture, the necessary reduction is to be applied to
each company in proportion to the total outstanding
reinsurance.
Page 9
ARTICLE IX
TERMINATIONS & REDUCTIONS
A. Terminations or reductions will take place in accordance with the
following rules, in order of priority:
1. The CEDING COMPANY must keep its retention on the policy.
2. Termination or reduction of a wholly reinsured policy will not
affect other reinsurance in force.
3. A termination or reduction on a wholly retained case will
cause an equal reduction in existing automatic reinsurance
with the oldest policy being reduced first.
4. A termination or reduction will be made first to reinsurance
of partially reinsured policies with the oldest policy being
reduced first.
5. If the policies are reinsured with multiple reinsurers, the
reinsurance will be reduced by the ratio of the amount of
reinsurance in each company to the total outstanding
reinsurance on the risk involved.
B. Whenever the amount of reinsurance on a policy under this Agreement
reduces to [dollar amount] or less, the reinsurance will be wholly
recaptured.
Page 10
ARTICLE X
REINSTATEMENT, CONTINUATIONS, EXTENDED TERM
AND REDUCED PAID-UP INSURANCE
A. Any policy originally reinsured in accordance with the terms and
conditions of this Agreement by the CEDING COMPANY may be automatically
reinstated with [name of reinsurance company] so long as the policy is
reinstated in accordance with the terms and rules of the CEDING COMPANY.
All reinstatements will be underwritten and approved by the CEDING
COMPANY. The CEDING COMPANY will pay [name of reinsurance company] its
share of amounts collected or charged for the reinstatement of such
policy.
B. A continuation is a new policy replacing a policy issued earlier by the
CEDING COMPANY or a change in an existing policy that is issued or made
either:
1. Under the terms of the original policy, or
2. Without the same new underwriting information the CEDING
COMPANY would obtain in the absence of the original policy, or
3. Without a suicide exclusion period or contestable period of
equal duration to those contained in new issues by the CEDING
COMPANY, or
4. Without the payment of the same commissions in the first year
that the CEDING COMPANY would have paid in the absence of the
original policy.
C. Continuations will be reinsured under this Agreement only if the original
policy was reinsured with [name of reinsurance company]; the amount of
reinsurance under this Agreement will not exceed the amount of the
reinsurance of the original policy with [name of reinsurance company]
immediately prior to the continuation.
D. Changes as a result of extended term or reduced paid-up insurance will be
handled like reductions.
Page 11
ARTICLE XI
LIABILITY
A. This is an Agreement solely between [name of reinsurance company] and the
CEDING COMPANY. In no instance will anyone other than [name of reinsurance
company] or the CEDING COMPANY have any rights under this agreement, and
the CEDING COMPANY will be and remain solely liable to any insured,
policyowner, or beneficiary under any policy reinsured hereunder.
B. The liability for all automatic reinsurance accepted by [name of
reinsurance company] under this Agreement will commence simultaneously
with that of the CEDING COMPANY.
C. [name of reinsurance company] will not be liable for proceeds paid under
the CEDING COMPANY'S conditional receipt or temporary insurance agreement
unless conditions for automatic coverage under Article I of this Agreement
are met or until the CEDING COMPANY has accepted [name of reinsurance
company]'S unconditional offer on facultative submissions.
D. Liability for all reinsurance submitted facultatively to [name of
reinsurance company] will commence when all of the following conditions
have been met:
1. [name of reinsurance company]'S offer has been accepted and
the CEDING COMPANY has properly documented its records to
reflect this acceptance, and
2. No more than one-hundred twenty (120) days have elapsed from
the date of [name of reinsurance company]'S final offer unless
[name of reinsurance company] explicitly states in writing
that the final offer is extended for some further period of
time.
E. The liability of [name of reinsurance company] for all reinsurance under
this Agreement will cease simultaneously with the liability of the CEDING
COMPANY and will not exceed the CEDING COMPANY'S contractual liability
under the terms of its policies.
Page 12
ARTICLE XII
CLAIMS
A. Prompt notice of a claim must be given to [name of reinsurance company].
In every case of loss, copies of the proofs obtained by the CEDING COMPANY
will be taken by [name of reinsurance company] as sufficient. Copies
thereof, together with proof of the amount paid on such claim by the
CEDING COMPANY will be furnished to [name of reinsurance company] when
requesting its share of the claim. However, if the amount reinsured with
[name of reinsurance company] is more than the amount retained by the
CEDING COMPANY and the claim is contestable, all papers in connection with
such claim, including all underwriting and investigation papers, must be
submitted to [name of reinsurance company] for its recommendation before
admission of any liability on the part of the CEDING COMPANY. However, in
all cases the CEDING COMPANY will make the final decision on the admission
of any liability, and [name of reinsurance company] will abide by that
decision.
B. The CEDING COMPANY will notify [name of reinsurance company] of its
intention to contest, compromise, or litigate a claim. Unless it declines
to be a party to such action, [name of reinsurance company] will pay its
share of any settlement up to the maximum that would have been payable
under the specific policy had there been no controversy plus its share of
specific expenses, except as specified below.
If [name of reinsurance company] declines to be a party to the contest,
compromise, or litigation of a claim, it will pay its full share of the
amount reinsured, as if there had been no contest, compromise, or
litigation, and its proportionate share of covered expenses incurred to
the date it notifies the CEDING COMPANY it declines to be a party.
In no event will the following categories of expenses or liabilities be
reimbursed:
1. Routine investigative or administrative services performed by
employees of the CEDING COMPANY;
2. Salaries of employees or other internal expenses of the CEDING
COMPANY or the original issuing company.
3. Extra contractual damages, including punitive and exemplary
damages;
4. Expenses incurred in connection with a dispute or contest
arising out of conflicting or any other claims of entitlement
to policy proceeds or benefits.
C. [name of reinsurance company] will reimburse the CEDING COMPANY for its
proportionate share of any interest paid by the CEDING COMPANY to the
beneficiary, and for interest at an agreed upon rate from the date the
CEDING COMPANY'S benefit check is drawn to the date [name of reinsurance
company]'S reimbursement check is sent.
D. If the amount of insurance changes because of a misstatement of rate
classification, [name of reinsurance company]'S share of reinsurance
liability will change proportionately.
E. For approved Waiver of Premium benefit claims, [name of reinsurance
company] will pay the CEDING COMPANY its portion of the amount of gross
premiums waived by the CEDING COMPANY.
Page 13
ARTICLE XIII
ARBITRATION
A. It is the intention of [name of reinsurance company] and the CEDING
COMPANY that the customs and practices of the insurance and reinsurance
industry will be given full effect in the operation and interpretation of
this Agreement. The parties agree to act in all things with the highest
good faith. If [name of reinsurance company] or the CEDING COMPANY cannot
mutually resolve a dispute which arises out of or relates to this
Agreement, however, the dispute will be decided through arbitration. The
arbitrators will 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; there will be no appeal from their
decision, and any court having jurisdiction of the subject matter and the
parties may reduce that decision to judgment.
B. To initiate arbitration, either the CEDING COMPANY or [name of reinsurance
company] will notify the other party in writing of its desire to
arbitrate, stating the nature of its dispute and the remedy sought. The
party to which the notice is sent will respond to the notification in
writing within ten (10) days of its receipt.
C. There will be three arbitrators who will be current or former officers of
life insurance companies other than the contracting companies. Each of the
contracting companies will appoint one of the arbitrators and these two
arbitrators will select the third. If either party refuses or neglects to
appoint an arbitrator within sixty days, the other party may appoint the
second arbitrator. If the two arbitrators do not agree on a third
arbitrator within sixty days of their appointment, each of the arbitrators
will nominate three individuals. Each arbitrator will then decline two of
the nominations presented by the other arbitrator. The third arbitrator
will then be chosen from the remaining two nominations by drawing lots.
D. It is agreed that each of the three arbitrators should be impartial
regarding the dispute and should resolve the dispute on the basis
described in Section A of this Article. Therefore, at no time will either
the CEDING COMPANY or [name of reinsurance company] contact or otherwise
communicate with any person who is to be or has been designated as a
candidate to serve as an arbitrator concerning the dispute, except upon
the basis of jointly drafted communications provided by both the CEDING
COMPANY and [name of reinsurance company] to inform the arbitrators of the
nature and facts of the dispute. Likewise, any written or oral arguments
provided to the arbitrators concerning the dispute will be coordinated
with the other party and will be provided simultaneously to the other
party or will take place in the presence of the other party. Further, at
no time will any arbitrator be informed that the arbitrator has been named
or chosen by one party or the other.
Page 14
E. The arbitration hearing will be held on the date fixed by the arbitrators.
In no event will this date be later than six (6) months after the
appointment of the third arbitrator. As soon as possible, the arbitrators
will establish pre-arbitration procedures as warranted by the facts and
issues of the particular case. At least ten (10) days prior to the
arbitration hearing, each party will provide the other party and the
arbitrators with a detailed statement of the facts and arguments it will
present at the arbitration hearing. The arbitrators may consider any
relevant evidence; they will give the evidence such weight as they deem it
entitled to after consideration of any objections raised concerning it.
The party initiating the arbitration will have the burden of proving its
case by a preponderance of the evidence. Each party may examine any
witnesses who testify at the arbitration hearing.
F. The cost of arbitration will be borne by the losing party unless the
arbitrators decide otherwise.
Page 15
ARTICLE XIV
INSOLVENCY
A. In the event of the insolvency of the CEDING COMPANY, all reinsurance will
be payable directly to the liquidator, receiver, or statutory successor of
the CEDING COMPANY without diminution because of the insolvency of the
CEDING COMPANY.
B. In the event of insolvency of the CEDING COMPANY, the liquidator, receiver
or statutory successor will immediately give written notice to [name of
reinsurance company] of all pending claims against the CEDING COMPANY on
any policies reinsured. While a claim is pending, [name of reinsurance
company] may investigate and interpose, at its own expense, in the
proceedings where the claim is adjudicated, any defense or defenses which
it may deem available to the CEDING COMPANY or its liquidator, receiver or
statutory successor. The expense incurred by [name of reinsurance company]
will be chargeable, subject to court approval, against the CEDING COMPANY
as part of the expense of liquidation to the extent of a proportionate
share of the benefit which may accrue to the CEDING COMPANY solely as a
result of the defense undertaken by [name of reinsurance company]. 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 will be apportioned in accordance with the terms of the
reinsurance agreement as though such expense had been incurred by the
CEDING COMPANY.
C. Any debts or credits, matured or unmatured, liquidated or unliquidated, in
favor of or against either [name of reinsurance company] or the CEDING
COMPANY 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 will be offset, and only the balance will be allowed or
paid.
Page 16
ARTICLE XV
RIGHT TO INSPECT
[name of reinsurance company] may at all reasonable times inspect the
CEDING COMPANY'S original papers, records, books, files, etc., relating to
the business under this Agreement.
Page 17
ARTICLE XVI
DURATION OF AGREEMENT
A. This Agreement may be terminated as to new reinsurance at any time by
either party giving ninety (90) days written notice of termination. The
day the notice is mailed to the party's Home Office, or, if the mail is
not used, the day it is delivered to the other party's Home office, or, if
the mail is not used, the day it is delivered to the other party's other
party's Home Office or to an Officer of the other party will be the first
day of the ninety (90) day period.
B. During the ninety (90) day period, this Agreement will continue to operate
in accordance with its terms.
C. [name of reinsurance company] and the CEDING COMPANY will remain liable
after termination, in accordance with the terms and conditions of this
Agreement, with respect to all reinsurance effective prior to termination
of this Agreement.
Page 18
ARTICLE XVII
EXECUTION OF AGREEMENT
IN WITNESS OF THE ABOVE,
IDS LIFE INSURANCE COMPANY
of
Minneapolis, Minnesota
and
[name of reinsurance company]
of
[city and state of reinsurance company],
have by their respective officers executed and delivered this Agreement in
duplicate on the dates indicated below, with an effective date of April 1, 1990.
IDS LIFE INSURANCE COMPANY
By: [ILLEGIBLE] By: [ILLEGIBLE]
------------------------------------ -----------------------------------------------------
Title: Vice President, Finance Title: Vice President, Insurance Product Development
------------------------------------ -----------------------------------------------------
Date: 6/4/90
------------------------------------
[name of reinsurance company]
By: [signature] By: [signature]
------------------------------------ -----------------------------------------------------
[title] [title]
Title: Title:
------------------------------------ -----------------------------------------------------
Date: 2/22/90
------------------------------------
Page 19
EXHIBIT A
RETENTION SCHEDULE
Automatic Cessions and Capacity Facultative Cessions
The CEDING COMPANY'S retention limit for life and waiver benefits will be
[dollar amount].
The CEDING COMPANY'S retention limit may be exceeded by [dollar amount] to
eliminate the ceding of reinsurance which would otherwise be required.
Non-Capacity Facultative Cessions
The CEDING COMPANY will retain [percentage] of the initial risk on
non-capacity facultative cessions, up to its full retention of [dollar
amount].
EXHIBIT B
POLICY PLANS REINSURED
Effective April 1, 1990
Universal Life
Base plans: UL25, UL100, UL500, VUL, EUL25, and EUL100 Riders: Other
Insured Riders (OIR) and Waiver of Monthly Deductions (WMD)
UL100 and UL500 policies written with a Survivor Insurance Rider (SIR)
attached are excluded from the Automatic Risk Pool.
Fixed Premium, Fixed Benefit Whole Life
Base plan: Whole Life
Riders: Annual Reducing Term (ART) and Waiver of Premium (WP)
Level Benefit Term Insurance
Base plans: YRT, YRT - 7 and 10 Year Renewable Term
Riders: Annual Reducing Term (ART) and Waiver of Premium (WP)
Decreasing Benefit Term Insurance
Base plans: ART and Mortgage Term
Riders: Annual Reducing Term (ART) and Waiver of Premium (WP)
EXHIBIT C
PREMIUMS
Life Reinsurance
The consideration payable for this coverage shall be based on the
appropriate life rate from the attached Rate Table C-1, multiplied by the
percentages listed below:
Policy Year Percentage
----------- ----------
1 [percentage]
2 & After [percentage]
For substandard table ratings, the premiums will be increased by
[percentage] per table.
For permanent flat extra premiums (payable for six years or more) the
premium due will be zero in the first year and [percentage] of the amount
charged the insured on the amount reinsured in renewal years. For flat
extra premiums payable for five years or less, the premium due will be
based on the amount charged the insured on the amount reinsured,
multiplied by [percentage] in the first year and [percentage] in renewal
years.
Waiver of Premium Benefits
The premium to be paid for reinsurance of Waiver of Premium benefits will
be the premium charged the insured on the amount reinsured, multiplied by
[percentage] in the first year and [percentage] in renewal years.
MALE RATE TABLE
Guaranteed Maximum Monthly Cost of Insurance Rates per $1,000
for Insureds with a Standard Rate Classification
Standard Standard Standard
Attained Non- Attained Non- Attained Non-
Age Standard Smoker Age Standard Smoker Age Standard Smoker
--- -------- ------ --- -------- ------ --- -------- ------
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
For insureds with other than a standard rating classification, the guaranteed
monthly cost of insurance rates are calculated by multiplying the above monthly
rates by the Special Class Rating Factor shown under Policy Data.
C-1
C-1
FEMALE RATE TABLE
Guaranteed Maximum Monthly Cost of Insurance Rates per $1,000
for Insureds with a Standard Rate Classification
Standard Standard Standard
Attained Non- Attained Non- Attained Non-
Age Standard Smoker Age Standard Smoker Age Standard Smoker
--- -------- ------ --- -------- ------ --- -------- ------
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
For insureds with other than a standard rating classification, the guaranteed
monthly cost of insurance rates are calculated by multiplying the above monthly
rates by the Special Class Rating Factor shown under Policy Data.
EXHIBIT D
BINDING LIMITS
[name of reinsurance company]'S PARTICIPATION PERCENTAGE
[name of reinsurance company]'S participation percentage for each risk
reinsured with the Pool shall be as shown below:
[percentage]
AUTOMATIC BINDING LIMITS
The CEDING COMPANY agrees not to automatically bind [name of reinsurance
company] when the amount to be ceded to [name of reinsurance company]
exceeds the following limits:
Life: [dollar amount]
Waiver of Premium: [dollar amount]
JUMBO LIMIT
A Jumbo risk is one where the amount of insurance already in force and
applied for on the risk in all companies exceeds the following limit:
[dollar amount]