Amendment #2 to the AUTOMATIC AND FACULTATIVE
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Amendment #2 |
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to the |
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AUTOMATIC AND FACULTATIVE |
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE May 1, 2008
Between
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
(THE COMPANY)
And
MUNICH AMERICAN REASSURANCE COMPANY
(THE REINSURER)
THE COMPANY and THE REINSURER have, by their respective officers, agreed to amend the above referenced agreement as set forth below with the amendment having the effective date of July 13, 2009.
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1. |
The PREAMBLE shall be replaced by the following: |
Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey issue policies known as PruLife Custom Premier II (“VUL II”) and VUL Protector and reinsure this business with THE COMPANY. Pramerica of Bermuda Life Assurance Company, Ltd. issues policies know as Private Placement Variable Universal Life
(“PPVUL”) and reinsures this business with THE COMPANY. Collectively, these three companies are known as “THE ISSUING COMPANIES.” THE COMPANY reinsures certain VUL II, VUL Protector, and PPVUL policies with THE REINSURER as shown in Schedule A.
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2. |
SCHEDULE A, Section 1, POLICIES REINSURED, shall be replaced by the following: |
POLICIES REINSURED:
This Agreement covers the following plans and policies:
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PruLife Custom Premier II (May 2008 revision) (“VUL II”) – (Form Number VUL-2008 and all state variations) |
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Private Placement Variable Universal Life (“PPVUL”) – (Form Number PPVUL-2008) |
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Private Placement Variable Universal Life (January 2009 revision) (“PPVUL”) – (Form Number PPVUL-2008) |
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VUL Protector – (Form Number VULNT-2009) |
Excluded from reinsurance under this Agreement are the Accidental Death Benefits and Enhanced Disability Benefit included in the above-reinsured policies. Also excluded from reinsurance under this Agreement are riders that provide additional life insurance on the lives of any dependent children of the policyholder. Included
under this Agreement is the Living Needs Benefit rider offered on VUL II and VUL Protector policies. Living Needs Benefit is not available on PPVUL policies.
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3. |
SCHEDULE A, Section 2, AUTOMATIC PORTION REINSURED, shall be replaced by the following: |
AUTOMATIC PORTION REINSURED:
VUL II and VUL Protector
THE REINSURER will automatically reinsure under this Agreement, an amount equal to 25% of the net amount at risk related to the face amount of insurance that is in excess of $500,000, up to the First Layer of Coverage amounts shown in Schedule A, Section 5 below.
PPVUL II
THE REINSURER will automatically reinsure under this Agreement, an amount equal to 25% of the net amount at risk related to the face amount of insurance that is in excess of $1,000,000, up to the First Layer of Coverage amounts shown in Schedule A, Section 5 below.
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4. |
SCHEDULE A, Section 5, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following: |
AUTOMATIC ACCEPTANCE LIMIT:
Automatic Issue Limits
For any policy to be reinsured under automatic reinsurance, the maximum face amount will not exceed $65 million. Automatic Issue Limits may vary based on issue age and substandard rating.
First Layer Amount
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance are the First Layer of Coverage amounts shown in the following tables. First Layer amounts do not vary by smoker status:
US/Canadian Residents
redacted
Non US/Canadian Residents
redacted
Automatic Binding Limits
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE REINSURER on that life will not exceed the amounts in the following tables:
YRT-VUL 2008/PPVUL-2008-▇▇▇▇-▇▇▇▇-2
VUL II and VUL Protector
US/Canadian Residents
redacted
Non-US/Canadian Residents
redacted
PPVUL
US/Canadian Residents
redacted
Non-US/Canadian Residents
redacted
YRT-VUL 2008/PPVUL-2008-▇▇▇▇-▇▇▇▇-2
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5. |
SCHEDULE B, Section 1, STANDARD ANNUAL REINSURANCE PREMIUMS, shall be replaced by the following: |
STANDARD ANNUAL REINSURANCE PREMIUMS:
The standard annual reinsurance premiums per $1,000 of net amount at risk for all cessions of automatic and facultative reinsurance will be the product of the factors below and the rates in the table attached to this Schedule B.
VUL II and VUL Protector
redacted
PPVUL
redacted
Note that the above rating classes for VUL II, VUL Protector, and PPVUL do not necessarily coincide.
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SCHEDULE B, Section 2, SUBSTANDARD ANNUAL REINSURANCE PREMIUMS, shall be replaced by the following: |
SUBSTANDARD ANNUAL REINSURANCE PREMIUMS:
The substandard extra premiums are available on classes 4 and 6 (Non-Smoker and Smoker). For substandard issues, the substandard extra reinsurance premium (plus any flat extra) is payable for 20 years. After this period, the base reinsurance premium (plus any flat extra) is payable until the end of the premium paying
period.
The substandard extra annual reinsurance premiums per $1,000 for substandard issues will be the product of the base reinsurance premiums per $1,000 and the factor for the appropriate rating class.
VUL II and VUL Protector
The factor is a product of the 100% substandard adjustment percentage and the substandard mortality multiple for the rating class. Note that this is the total premium per $1000, including both the base and substandard extra premium rates.
YRT-VUL 2008/PPVUL-2008-▇▇▇▇-▇▇▇▇-2
The factors are as follows:
redacted
PPVUL
The factor is a product of the 100% substandard adjustment percentage and the substandard mortality multiple for the rating class. Note that this is the total premium per $1000, including both the base and substandard extra premium rates.
The factors are as follows:
redacted
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7. |
SCHEDULE B, Section 5, AGE BASIS, shall be replaced by the following: |
AGE BASIS:
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VUL - Age Last Birthday |
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VUL Protector - Age Last Birthday |
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PPVUL - Age Nearest Birthday |
YRT-VUL 2008/PPVUL-2008-▇▇▇▇-▇▇▇▇-2
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and delivered this Agreement in duplicate, each of which shall be deemed an original but both of which together shall constitute one and the same instrument, on the dates indicated below.
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THE PRUDENTIAL INSURANCE COMPANY OF AMERICA |
MUNICH AMERICAN REASSURANCE COMPANY |
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By:________________________________ |
By:______________________________ |
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Title:_______________________________ |
Title:_____________________________ |
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Date:_______________________________ |
Date:_____________________________ |
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By:________________________________ |
By:______________________________ |
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Title:_______________________________ |
Title:_____________________________ |
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Date:_______________________________ |
Date:_____________________________ |
YRT-VUL 2008/PPVUL-2008-▇▇▇▇-▇▇▇▇-2