Exhibit (g)(1)
Automatic Self Administered YRT Reinsurance Agreement
between
American National Insurance Company
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
(hereinafter referred to as the 'Ceding Company')
and
▇▇▇▇▇▇▇ Global Life Reinsurance Company
Los Angeles, CA
Executive Offices: Toronto, Ontario
(hereinafter referred to as the "Reinsurer")
Effective: June 1, 2003
Treaty #: U24
I
Table of Contents
PREAMBLE .4
1.1 PARTIES TO THE AGREEMENT 4
1.2 COMPLIANCE 4
1.3 CONSTRUCTION 4
1.4 ENTIRE AGREEMENT 4
1.5 SEVERABILITY 4
AUTOMATIC REINSURANCE
2.1 GENERAL CONDITIONS 5
2.2 RETAINED AMOUNTS 5
FACULTATIVE REINSURANCE 5
COMMENCEMENT OF LIABILITY 6
4.1 AUTOMATIC REINSURANCE 6
4.2 FACULTATIVE REINSURANCE 6
4.3 CONDITIONAL RECEIPT OR TEMPORARY INSURANCE 6
REINSURED RISK AMOUNT 6
5.1 LIFE 6
5.2 WAIVER OF PREMIUM (IF APPLICABLE) 6
5.3 ACCIDENTAL DEATH BENEFIT (IF APPLICABLE) 6
PREMIUM ACCOUNTING 7
6.1 PREMIUMS 7
6.2 PAYMENT OF PREMIUMS 7
6.3 DELAYED PAYMENT 7
6.4 FAILURE TO PAY PREMIUMS 7
6.5 PREMIUM RATE GUARANTEE 8
REDUCTIONS. TERMINATIONS AND CHANGES 8
7.1 REDUCTIONS AND TERMINATIONS 8
7.2 INCREASES 8
7.3 RISK CLASSIFICATION CHANGES 9
7.4 REINSTATEMENT 9
7.5 NONFORFEITURE BENEFITS 9
CONVERSIONS, EXCHANGES AND REPLACEMENTS 9
8.1 CONVERSIONS 9
8.2 EXCHANGES AND REPLACEMENTS 10
CLAIMS 10
9.1 NOTICE 10
9.2 PROOFS 10
9.3 AMOUNT AND PAYMENT OF REINSURANCE BENEFITS 10
9.4 CONTESTABLE CLAIMS 11
9.5 CLAIM EXPENSES 11
9.6 MISREPRESENTATION OR SUICIDE 11
9.7 MISSTATEMENT OF AGE OR SEX 12
9.8 EXTRA-CONTRACTUAL DAMAGES 12
CREDIT FOR RESERVES .12
10.1 RESERVE METHODOLOGY AND REPORTING 12
RETENTION LIMIT CHANGES 13
RECAPTURE 13
GENERAL PROVISION 13
13.1 CURRENCY 13
13.2 PREMIUM TAX IINSERT ( APPLICABLE) AND EXCISE TAX 13
13.4 MINIMUM CESSION 13
13.5 INSPECTION OF RECORDS 13
13.6 FORMS. MANUALS & ISSUE RULES 13
DAC TAX 14
OFFSET 14
INSOLVENCY 15
16.1 INSOLVENCY OF A PARTY TO THIS AGREEMENT 15
16.2 INSOLVENCY OF THE CEDING COMPANY is
16.3 INSOLVENCY OF THE REINSURER 15
ERRORS AND OMISSIONS 15
DISPUTE RESOLUTION 16
ARBITRATION 16
CONFIDENTIALITY 17
DURATION OF AGREEMENT 17
EXECUTION 18
EXHIBITS
A - Retention Limits of the Ceding Company
B - Plans Covered and Binding Limits
C - Forms, Manuals, and Issue Rules
D - Allocation Rules for Placement of Facultative Cases
E - Reinsurance Premiums
F - Conversion Premiums
G - Self-Administered Reporting
H - Application for FacultativeReinsurance Form
I - Contestable Claims Procedures
Preamble
1.1 PARTIES TO THE AGREEMENT
This is a YRT agreement for indemnity reinsurance (the 'Agreement') solely
between
American National Insurance Company of Texas (the Ceding Company), and ▇▇▇▇▇▇▇
Global Life Reinsurance Company of California (the Reinsurer), collectively
referred to as
the "parties".
The acceptance of risks under this Agreement will create no right or legal
relationship between the Reinsurer and the insured, owner or beneficiary of any
insurance policy or other contract of the Ceding Company.
The Agreement will be binding upon the Ceding Company and the Reinsurer and
their respective successors and
assigns.
Both parties are expected to act in good faith. The Ceding Company is expected
to disclose material facts concerning changes in underwriting practices and
personnel. The Ceding Company's underwriting, administration and claims
practices are expected to be consistent with those in the life insurance
industry. The Ceding Company must notify the Reinsurer if it undertakes any
uncustomary practices and obtain the Reinsurer's written consent of such action
before making the Reinsurer liable for policies covered.
1.2 COMPLIANCE
This Agreement applies only to the issuance of insurance by the Ceding Company
in a jurisdiction in which it is properly licensed.
The Ceding Company represents that, to the best of its knowledge, it is in
compliance with all state and federal laws applicable to the business reinsured
under this Agreement. In the event that the Ceding Company is found to be in
non-compliance with any law material to this Agreement, the Agreement will
remain in effect and the Ceding Company will indemnify the Reinsurer for any
direct loss the Reinsurer suffers as a result of the non compliance, and will
seek to remedy the non-compliance.
1.3 CONSTRUCTION
This Agreement will be construed in accordance with the laws of the state of
Texas.
1.4 ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties with respect
to the business reinsured hereunder. There are no understandings between the
parties other than as expressed in this Agreement. Any change or modification to
this Agreement will be null and void unless made by amendment to this Agreement
and signed by both parties.
1.5 SEVERABILITY
If any provision of this Agreement is determined to be invalid or unenforceable,
such determination will not impair or affect the validity or the enforceability
of the remaining provisions of this Agreement.
4
AUTOMATIC REINSURANCE
2.1 GENERAL CONDITIONS
On and after the effective date of this Agreement, the Ceding Company will
automatically cede to the Reinsurer a portion of the life insurance policies,
supplementary benefits, and riders listed in Exhibit B. The insured, at the time
of the application, must be a permanent resident of the United States or Canada.
The Reinsurer will automatically accept its share of the above-referenced
policies up to the limits shown in Exhibit B, provided that:
a. the Ceding Company keeps its full retention, as specified in Exhibit A, or
otherwise holds its full retention on a life under previously issued inforce
policies
b. the Ceding Company applies its normal underwriting guidelines
c. the total of the new ultimate amount of reinsurance required including
contractual increases, and the amount already reinsured on that life under this
Agreement and all other agreements between the Reinsurer and the Ceding Company,
does not exceed the Automatic Binding Limits set out in Exhibit B
d. the amount of life insurance in force in all companies, including any
coverage to be replaced plus the amount currently applied for on that life in
all companies, does not exceed the Jumbo Limit stated in Exhibit B, and
e. the application is on a life that has not been submitted facultatively to the
Reinsurer or any other reinsurer within the last 2 years, unless the reason for
any prior facultative submission was solely for capacity that may now be
accommodated within the terms of this Agreement.
2.2 RETAINED AMOUNTS
The Ceding Company may not reinsure the amount it has retained on the business
covered under this Agreement, on any basis, without prior notification to the
Reinsurer.
FACULTATIVE REINSURANCE
3.1 The Ceding Company may submit any application on a plan or rider identified
in Exhibit B to the Reinsurer for its consideration on a facultative basis.
The Ceding Company will apply for reinsurance on a facultative basis by sending
to the Reinsurer an Application for Facultative Reinsurance, providing the
information outlined in Exhibit H. Accompanying this Application will be copies
of all underwriting evidence that is available for risk assessment including,
but not limited to, copies of the application for insurance, medical examiners'
reports, attending physicians' statements, inspection reports, and any other
information bearing on the insurability of the risk. The Ceding Company also
will notify the Reinsurer of any outstanding underwriting requirements at the
time of the facultative submission. Any subsequent information received by the
Ceding Company that is pertinent to the risk assessment will be immediately
transmitted to the Reinsurer.
After consideration of the Application for Facultative Reinsurance and related
information, the Reinsurer will promptly inform the Ceding Company of its
underwriting decision. The Reinsurer's offer will expire at the end of 120 days,
unless otherwise specified by the Reinsurer.
If the underwriting decision is acceptable, the Ceding Company will notify the
Reinsurer in writing of its acceptance of the offer. If any risk is to be
submitted to more than one reinsurer
5
for consideration, the Allocation Rules for Placement of Facultative Cases as
outlined in Exhibit D will apply.
The relevant terms and conditions of this Agreement will apply to those
facultative offers made by the Reinsurer and accepted by the Ceding Company.
COMMENCEMENT OF LIABILITY
4.1 AUTOMATIC REINSURANCE
For automatic reinsurance, the Reinsurer's liability will commence at the same
time as the Ceding Company's liability.
4.2 FACULTATIVE REINSURANCE
For facultative reinsurance, the Reinsurer's liability will commence at the same
time as the Ceding Company's liability, provided that the Reinsurer has made a
facultative offer and that offer was accepted, in accordance with the terms of
this Agreement.
4.3 CONDITIONAL RECEIPT OR TEMPORARY INSURANCE
Reinsurance coverage under a conditional receipt or temporary insurance
provision is limited
to the Reinsurer's share of amounts within the Conditional Receipt or
Temporary Insurance
Limits specified in Exhibit B. The Reinsurer will accept liability provided
that the Ceding
Company has followed its normal cash-with-application procedures for such
coverage.
REINSURED RISK AMOUNT
5.1 LIFE
For policies with the level death benefit option, the net amount at risk of the
policy is defined as the policy face amount less the account value. For policies
with the varying death benefit option, the net amount at risk of the policy is
defined as the policy face amount. The reinsured net amount at risk for
automatic policies is determined by multiplying the total net amount at risk on
the policy by the Reinsurer's share as defined in Exhibit B. For variable amount
plans, the net amount at risk is calculated using the account value in effect at
the end of monthly reinsurance billing period. The Ceding Company will maintain
a quota share retention on each policy, up to the maximum limits of its
retention per life for the insured's issue age and rating, as shown in Exhibit
A. Risk amounts above that limit will be reinsured under the terms of this
Agreement on an excess basis.
The Ceding Company's retention on the policy will remain constant. Any change in
the net amount at risk due to changes in the policy's cash value or account
value will be allocated to the reinsured amount.
5.2 WAIVER OF PREMIUM
The reinsured proportion of Disability Waiver of Premium will not be greater
than the proportion reinsured on the corresponding life insurance benefit.
5.3 ACCIDENTAL DEATH BENEFIT
The Accidental Death Benefit amount reinsured will not be greater than the
corresponding life insurance benefit reinsured.
6
PREMIUM ACCOUNTING
6.1 PREMIUMS
Reinsurance premium rates for life insurance and other benefits reinsured under
this Agreement are shown in Exhibit E. The rates will be applied to the
reinsured net amount at risk.
The Ceding Company will pay the Reinsurer the percentages of the premium rates
shown in Exhibit E.
6.2 PAYMENT OF PREMIUMS
Reinsurance premiums are payable monthly and in arrears. The Ceding Company will
calculate the amount of reinsurance premium due and, within 30 days after the
end of the month, will send the Reinsurer a statement that contains the
information shown in Exhibit G, showing reinsurance premiums due for that
period. If an amount is due the Reinsurer, the Ceding Company will remit that
amount together with the statement. If an amount is due the Ceding Company, the
Reinsurer will remit such amount within 30 days of receipt of the statement.
6.3 DELAYED PAYMENT
The Remittance Date is defined as 30 days after the end of the reporting period.
6.4 FAILURE TO PAY PREMIUMS
The payment of reinsurance premiums is a condition precedent to the liability of
the Reinsurer for reinsurance covered by this Agreement. In the event that
reinsurance premiums are not paid within 60 days of the Remittance Date, the
Reinsurer will have the right to terminate the reinsurance under all policies
having reinsurance premiums in arrears. If the Reinsurer elects to exercise its
right of termination, it will give the Ceding Company 90 days written notice of
its intention. Such notice will be sent by certified mail.
If all reinsurance premiums in arrears, including any that become in arrears
during the 90 day notice period, are not paid before the expiration of the
notice period, the Reinsurer will be relieved of all liability under those
policies as of the last date to which premiums have been paid for each.
Reinsurance on policies on which reinsurance premiums subsequently fall due will
automatically terminate as of the last date to which premiums have been paid for
each policy, unless reinsurance premiums on those policies are paid on or before
their Remittance Dates.
Terminated reinsurance may be reinstated, subject to approval by the Reinsurer,
within 30 days of the date of termination, and upon payment of all reinsurance
premiums in arrears including any interest accrued thereon. The Reinsurer will
have no liability for any claims incurred between the date of termination and
the date of the reinstatement of the reinsurance. The right to terminate
reinsurance will not prejudice the Reinsurer's right to collect premiums for the
period during which reinsurance was in force prior to the expiration of the 90
days notice.
The Ceding Company will not force termination under the provisions of this
Article solely to avoid the provisions regarding recapture in Article 12, or to
transfer the reinsured policies to another reinsurer.
7
6.5 PREMIUM RATE GUARANTEE
For reasons relating to deficiency reserve requirements by the various state
insurance departments, the premium rates cannot be guaranteed for more than one
year. After one year, the Reinsurer may increase the reinsurance premium rates
if the Ceding Company increases its COl's due to mortality deterioration. The
Reinsurer may not increase premiums in excess of the valuation net premium. The
Ceding Company agrees to notify the Reinsurer of any intent to raise rates on
new or existing business.
REDUCTIONS, TERMINATIONS AND CHANGES
Whenever a change is made in the status, plan, amount or other material feature
of a policy reinsured under this Agreement, the Reinsurer will, upon receipt of
notification of the change, provide adjusted reinsurance coverage in accordance
with the provisions of this Agreement. The Ceding Company will notify the
Reinsurer of any such change within 60 days of its effective date.
7.1 REDUCTIONS AND TERMINATIONS
In the event of the reduction, lapse, or termination of a policy or policies
reinsured under this Agreement or any other agreement, the Ceding Company will
reduce or terminate reinsurance on that life. The reinsured amount on the life
with all reinsurers will be reduced, effective on the same date, by the amount
required such that the Ceding Company maintains its retention as defined under
this Agreement.
The reinsurance reduction will apply first to the policy or policies being
reduced and then, on a chronological basis, to other remsured policies on the
life, beginning with the oldest policy. If a fully retained policy on a life
that is reinsured under this Agreement is terminated or reduced, the Ceding
Company will reduce the existing reinsurance on that life by a corresponding
amount, with the reinsurance on the oldest policy being reduced first. If the
amount of reduction exceeds the risk amount reinsured, the reinsurance on the
policy or policies will be terminated.
The Reinsurer will refund any unearned reinsurance premiums net of allowances.
However, the reinsured portion of any policy fee will be deemed earned for a
policy year if the policy is reinsured during any portion of that policy year.
7.2 INCREASES
a. Noncontractual Increases
If the amount of insurance is increased as a result of a noncontractual change,
the increase will be underwritten by the Ceding Company in accordance with its
customary standards and procedures and will be considered new reinsurance under
this Agreement. The Reinsurer's approval is required if the original policy was
reinsured on a facultative basis or if the new amount will cause the reinsured
amount on the life to exceed either the Automatic Binding Limits or the Jumbo
Limits shown in Exhibit B.
The Ceding Company and the Reinsurer will share the increased amount
proportionately. Once the Ceding Company's maximum retention has been reached,
the remaining amount will be reinsured on an excess basis. Premiums for the
additional reinsurance will be at the new-issue rate from the point of increase.
b. Contractual Increases
For policies reinsured on an automatic basis, reinsurance of increases in amount
resulting from contractual policy provisions will be accepted only up to the
Automatic Binding Limits shown in Exhibit B.
8
For policies reinsured on a facultative basis, reinsurance will be limited to
the ultimate amount shown in the Reinsurer's facultative offer. Reinsurance
premiums for contractual increases will be on a point-in-scale basis from the
original issue age of the policy.
7.3 RISK CLASSIFICATION CHANGES
If the policyholder requests a Table Rating reduction or removal of a Flat
Extra, such change will be underwritten according to the Ceding Company's normal
underwriting practices. Risk classification changes on facultative policies will
be subject to the Reinsurer's approval.
7.4 REINSTATEMENT
If a policy reinsured on an automatic basis is reinstated in accordance with its
terms and in accordance with Ceding Company rules and procedures, the Reinsurer
will, upon notification of reinstatement, reinstate the reinsurance coverage. If
a policy reinsured on a facultative basis is reinstated, the Reinsurer will
reinstate the reinsurance coverage upon notification of reinstatement in
accordance with Ceding Company rules and procedures.
Upon reinstatement of the reinsurance coverage, the Ceding Company will pay the
contractual reinsurance premiums plus accrued interest for the period and at the
interest rate which it receives on premiums in arrears.
7.5 NONFORFEITURE BENEFITS
a. Extended Term
If the original policy lapses and extended term insurance is elected under the
terms of the policy, reinsurance will continue on the same basis as under the
original policy until the expiry of the extended term period.
b. Reduced Paid-up
If the original policy lapses and reduced paid-up insurance is elected under the
terms of the policy, the amount reinsured will be reduced.
The amount reinsured and the amount retained will be reduced proportionately.
The reinsurance premiums will be calculated in the same manner as reinsurance
premiums were calculated on the original policy.
CONVERSIONS, EXCHANGES AND REPLACEMENTS
If a policy reinsured under this Agreement is converted, exchanged or replaced
, the Ceding
Company will promptly notify the Reinsurer. Unless mutually agreed otherwise,
policies that
are not reinsured with the Reinsurer and that exchange or convert to a plan
covered under this
Agreement will not be reinsured hereunder.
8.1 CONVERSIONS
The Reinsurer will continue to reinsure policies resulting from the contractual
conversion of any policy reinsured under this Agreement, in an amount not to
exceed the original amount reinsured hereunder. If the plan to which the
original policy is converting is reinsured by the Reinsurer, either under this
Agreement or under a different Agreement, reinsurance premium rates for the
resulting converted policy will be those contained in the Agreement that covers
the plan to which the original policy is converting. However, if the new plan is
not reinsured by the Reinsurer, reinsurance premiums for a policy resulting from
a contractual conversion will use the rates shown in Exhibit F. Reinsurance
premiums and any allowances for conversions will be on a point-in-scale basis
from the original issue age of the policy.
9
If the conversion results in an increase in the risk amount, the increase will
be underwritten by the Ceding Company in accordance with its customary standards
and procedures. The Reinsurer will accept its share of such increases, subject
to the new business provisions of this Agreement. Reinsurance premiums and any
allowances for increased risk amounts will be first-year premiums at the
agreed-upon premium rate.
8.2 EXCHANGES AND REPLACEMENTS
A policy resulting from an internal exchange or replacement will be underwritten
by the Ceding Company in accordance with its underwriting guidelines, standards
and procedures for exchanges and replacements. If the Ceding Company's
guidelines treat the policy as new business, then the reinsurance will also be
considered new business. For purposes of this Article, new business is defined
as those policies on which:
a. the Ceding Company has obtained complete and current underwriting evidence on
the full amount; and
b. the full normal commissions are paid for the new plan; and
c. the Suicide and Contestable provisions apply as if the policy were newly
issued.
The Reinsurer's approval to exchange or replace the policy will be required if
the original policy was reinsured on a facultative basis.
If the Ceding Company's guidelines do not treat the policy as new business, the
exchange or replacement will continue to be ceded to the Reinsurer. The rates
will be based on the original issue age, underwriting class and duration since
the issuance of the original policy.
CLAIMS
Claims covered under this Agreement include only death claims, which are those
due to the death of the insured on a policy reinsured under this Agreement, and
any additional benefits specified in Exhibit B, which are provided by the
underlying policy and are reinsured under this Agreement.
9.1 NOTICE
The Ceding Company will notify the Reinsurer, as soon as reasonably possible,
after it receives a claim on a policy reinsured under this Agreement.
9.2 PROOFS
The Ceding Company will promptly provide the Reinsurer with proper claim proofs,
including a copy of the proof of payment by the Ceding Company, and a copy of
the claimant statement and a copy of the insured's death certificate. In
addition, for contestable claims, the Ceding Company will send to the Reinsurer
a copy of all papers in connection with the claim, except as provided in Exhibit
I.
9.3 AMOUNT AND PAYMENT OF REINSURANCE BENEFITS
As soon as the Reinsurer receives proper claim notice and proof of the claim,
the Reinsurer will promptly pay the reinsurance benefits due the Ceding Company.
The Ceding Company's contractual liability for policies reinsured under this
Agreement is binding on the Reinsurer. However, for claims incurred during the
contestable period, if the total amount of reinsurance ceded to all Reinsurers
on the policy is greater than the amount retained by the Ceding Company, or if
the Ceding Company retained less than its usual retention on the policy, the
Ceding Company will consult with the Reinsurer before conceding liability or
making
10
settlement to the claimant. The Ceding Company will wait at least 10 days for
the Reinsurer's recommendation.
In the instance of a claim incurred during the contestable period and to the
extent that it is consistent with the procedures in Exhibit I, the Ceding
Company shall promptly forward to the Reinsurer the notice of claim and all
relevant materials, including the underwriting file, and shall thereafter
continue to promptly forward all materials pertaining to the claim as they are
received. The Reinsurer shall review the claim papers, underwriting papers
including the underwriter's proposed decision on the claim and make a
recommendation within 5 working days from receipt of the request. The
consultation shall not impair the Ceding Company's freedom to act upon its
proposed decision on the claim, and the Ceding Company shall be solely
responsible for the final claims decision.
The total reinsurance recoverable from all companies will not exceed the Ceding
Company's total contractual liability on the policy, less the amount retained.
The maximum reinsurance death benefit payable to the Ceding Company under this
Agreement is the risk amount specifically reinsured with the Reinsurer. The
Reinsurer will also pay its proportionate share of the state mandated interest
that the Ceding Company pays on the death proceeds until the date of settlement.
Life benefit payments will be made in a single sum, regardless of the Ceding
Company's settlement options.
9.4 CONTESTED CLAIMS
The Ceding Company will promptly notify the Reinsurer of its intention to
contest, compromise, or litigate a claim involving a reinsured policy in
accordance with the procedures shown in Exhibit I. Once notified, the Reinsurer
will have 10 days to notify the Ceding Company in writing of its decision to
accept participation in the contest, compromise, or litigation. If the Reinsurer
has accepted participation, the Ceding Company will promptly advise the
Reinsurer of all significant developments in the claim investigation, including
notification of any legal proceedings against it in response to denial of the
claim.
If the Reinsurer does not accept participation, the Reinsurer will then fulfill
its obligation by paying the Ceding Company its full share of the reinsurance
amount, and will be fully discharged from any additional liability and will not
share in any subsequent reduction or increase in liability.
If the Reinsurer accepts participation and the Ceding Company's contest,
compromise, or litigation results in a reduction or increase in liability, the
Reinsurer share in any such reduction or increase in proportion to its share of
the risk on the contested policy.
9.5 CLAIM EXPENSES
The Reinsurer will pay its share of reasonable claim investigation and legal
expenses connected with the litigation or settlement of contractual liability
claims unless the Reinsurer has discharged its liability pursuant to Section 9.4
above. If the Reinsurer has so discharged its liability, the Reinsurer will not
participate in any expenses incurred thereafter.
The Reinsurer will not reimburse the Ceding Company for routine claim and
administration expenses, including but not limited to the Ceding Company's home
office expenses, compensation of salaried officers and employees, and any legal
expenses other than third party expenses incurred by the Ceding Company. Claim
investigation expenses do not include expenses incurred by the Ceding Company as
a result of a dispute or contest arising out of conflicting claims of
entitlement to policy proceeds or benefits.
9.6 MISREPRESENTATION OR SUICIDE
If the Ceding company returns premium to the policyowner or beneficiary as a
result of misrepresentation or suicide of the insured, the Reinsurer will refund
net reinsurance
11
premiums received on that policy without interest to the Ceding Company in lieu
of any other form of reinsurance benefit payable under this Agreement.
9.7 MISSTATEMENT OF AGE OR SEX
In the event of a change in the amount of the Ceding Company's liability on a
reinsured policy due to a misstatement of age or sex, the Reinsurer's liability
will change proportionately. The face amount of the reinsured policy will be
adjusted from the inception of the policy, and any difference will be settled
without interest.
9.8 EXTRA-CONTRACTUAL DAMAGES
The Reinsurer will not participate in punitive or compensatory damages that are
awarded against the Ceding Company as a result of an act, omission, or course of
conduct committed solely by the Ceding Company, its agents, or representatives
in connection with claims covered under this Agreement. The Reinsurer will also
not be liable for any settlements voluntarily made by the Ceding Company as a
result of an act, omission, or course of conduct committed solely by the Ceding
Company, its agents, or representatives in connection with claims covered under
this Agreement. The Reinsurer will, however, pay its share of statutory
penalties awarded against the Ceding Company in connection with claims covered
under this Agreement if the Reinsurer elected in writing to join in the contest
of the coverage in question.
The parties recognize that circumstances may arise in which equity would require
the Reinsurer, to the extent permitted by law, to share proportionately in
punitive and compensatory damages. Such circumstances are difficult to define in
advance, but would generally be those situations in which the Reinsurer was an
active party and, in writing, recommended, consented to, or ratified the act or
course of conduct of the Ceding Company that ultimately resulted in the
assessment of the extra-contractual damages. In such situations, the Reinsurer
and the Ceding Company will share such damages so assessed, in equitable
proportions.
For purposes of this Article, the following definitions will apply.
"Punitive Damages" are those damages awarded as a penalty, the amount of which
is neither governed nor fixed by statute.
"Compensatory Damages" are those amounts awarded to compensate for the actual
damages sustained, and are not awarded as a penalty, nor fixed in amount by
statute.
"Statutory Penalties" are those amounts awarded as a penalty, but are fixed in
amount by statute.
Waiver of Premium
The reinsurance benefit for an approved waiver of premium claim will be the
Reinsurer's proportionate share of the annual gross premium waived on the
policy. The Ceding Company will continue to pay the life reinsurance premium;
however, it will not pay the reinsurance premium for the waiver benefit for the
duration of the waiver claim period. The Reinsurer will pay waiver benefits
annually regardless of the mode of premium payment specified in the policy.
CREDIT FOR RESERVES
10.1 RESERVE METHODOLOGY AND REPORTING
The parties intend that the Ceding Company will receive full statutory reserve
credit in its state of domicile for the insurance risks ceded to the Reinsurer.
The parties agree to make all reasonable efforts to ensure that this is
accomplished.
12
The Ceding Company will provide a reserve summary for business reinsured under
this agreement to the Reinsurer on an annual basis, along with a detailed
description of its reserving assumptions and any changes in these assumptions
applicable to each calendar year.
RETENTION LIMIT CHANGES
11.1 If the Ceding Company changes its maximum retention limits as shown in
Exhibit A, it will provide the Reinsurer with written notice of the intended
changes thirty (30) days in advance of their effective date.
A change to the Ceding Company's maximum retention limits will not affect the
reinsured policies in force except as specifically provided elsewhere in this
Agreement. Furthermore, unless agreed between the parties, an increase in the
Ceding Company's retention schedule will not effect an increase in the total
risk amount that it may automatically cede to the Reinsurer.
RECAPTURE
12.1 Recapture is not available until the end of the 10th policy year, and then
must be in conjunction with an increase in the Ceding Company's maximum dollar
schedule of retention. The amount eligible for recapture will be the difference
between the amount originally retained and the amount the Ceding Company would
have retained on the same quota share basis had the new maximum dollar retention
schedule been in effect at the time of issue.
GENERAL PROVISION
13.1 CURRENCY
All payments and reporting by both parties under this Agreement will be made in
United States dollars.
13.2 PREMIUM TAX
The Reinsurer will not reimburse the Ceding Company for premium taxes.
13.4 MINIMUM CESSION
The Ceding Company will not cede a policy to the Reinsurer unless the amount to
be reinsured at issue exceeds the Initial Minimum Cession amount shown in
Exhibit B.
Reinsurance will be cancelled on any policy when its reinsured net amount at
risk falls below the Trivial Amount limit shown in Exhibit B.
13.5 INSPECTION OF RECORDS
The Reinsurer and the Ceding Company, or their duly authorized representatives,
will have the right to inspect original papers, records, and all documents
relating to the business reinsured under this Agreement including underwriting,
claims processing, and administration. Such access will be provided during
regular business hours at the office of the inspected party.
13.6 FORMS, MANUALS & ISSUE RULES
The Ceding Company affirms that its retention schedule, underwriting guidelines,
issue rules, premium rates and policy forms applicable to the Reinsured Policies
and in use as of the effective date, have been supplied to the Reinsurer.
13
The Ceding Company will promptly notify the Reinsurer of any proposed material
changes in its underwriting guidelines. This Agreement will not extend to
policies issued pursuant to such changes unless the Reinsurer has consented in
writing to accept policies subject to such changes.
It is the Ceding Company's responsibility to ensure that its practice and
applicable forms are in compliance with current Medical Information Bureau (MIB)
guidelines.
DAC TAX
14.1 The parties to this Agreement agree to the following provisions pursuant to
Section 1.8 of the Income Tax Regulations effective December 29, 1992, under
Section 848 of the Internal Revenue Code of 1986, as amended:
a. The term `party' refers to either the Ceding Company or the Reinsurer, as
appropriate.
b. The terms used in this Article are defined by reference to Regulation Section
1.848-2, effective December 29, 1992.
c. The party with the net positive consideration for this Agreement for each
taxable year will capitalize specified policy acquisition expenses with respect
to this Agreement without regard to the general deductions limitation of Section
848(c)(1).
d. Both parties agree to exchange information pertaining to the amount of net
consideration under this Agreement each year to ensure consistency, or as
otherwise required by the Internal Revenue Service.
e. The Ceding Company will submit a schedule to the Reinsurer by May 1 of each
year with its calculation of the net consideration for the preceding calendar
year. This schedule of calculations will be accompanied by a statement signed by
an officer of the Ceding Company stating that the Ceding Company will report
such net consideration in its tax return for the preceding calendar year. The
Reinsurer may contest such calculation by providing an alternative calculation
to the Ceding Company in writing, by facsimile, or electronic mail within 15
days of the Reinsurer's receipt of the Ceding Company's calculation. If the
Reinsurer does not so notify the Ceding Company within the required timeframe,
the Reinsurer will report the net consideration as determined by the Ceding
Company in the Reinsurer's tax return for the previous calendar year.
f. If the Reinsurer contests the Ceding Company's calculation of the net
consideration, the parties will act in good faith to reach an agreement as to
the correct amount within 30 days of the date the Reinsurer submits its
alternative calculation. If the Ceding Company and the Reinsurer reach an
agreement on an amount of net consideration, each party will report the agreed
upon amount in its tax return for the previous calendar year.
g. Both the Ceding Company and the Reinsurer represent and warrant that they are
subject to United States taxation under either Subchapter L or Subpart F of Part
III of Subchapter N of the Internal Revenue Code of 1986, as amended.
OFFSET
15.1 Any debts or credits, in favor of or against either the Reinsurer or the
Ceding Company with respect to this Agreement or any other reinsurance agreement
between the parties, are deemed mutual debts or credits and may be offset, and
only the balance will be allowed or paid.
The right of offset will not be affected or diminished because of the insolvency
of either party.
14
INSOLVENCY
16.1 INSOLVENCY OF A PARTY TO THIS AGREEMENT
A party to this Agreement will be deemed insolvent when it:
a. applies for or consents to the appointment of a receiver, rehabilitator,
conservator, liquidator or statutory successor of its properties or assets; or
b. is adjudicated as bankrupt or insolvent; or
c. files or consents to the filing of a petition in bankruptcy, seeks
reorganization to avoid insolvency or makes formal application for any
bankruptcy, dissolution, liquidation or similar law or statute; or
d. becomes the subject of an order to rehabilitate or an order to liquidate as
defined by the insurance code of the jurisdiction of the party's domicile.
16.2 INSOLVENCY OF THE CEDING COMPANY
In the event of the insolvency of the Ceding Company, all reinsurance payments
due under this Agreement will be payable directly to the liquidator,
rehabilitator, receiver, or statutory successor of the Ceding Company, without
diminution because of the insolvency, for those claims allowed against the
Ceding Company by any court of competent jurisdiction or by the liquidator,
rehabilitator, receiver or statutory successor having authority to allow such
claims.
In the event of insolvency of the Ceding Company, the liquidator, rehabilitator,
receiver, or statutory successor will give written notice to the Reinsurer of
all pending claims against the Ceding Company on any policies reinsured within a
reasonable time after such claim is filed in the insolvency proceeding. While a
claim is pending, the Reinsurer may investigate and interpose, at its own
expense, in the proceeding where the claim is adjudicated, any defense or
defenses that it may deem available to the Ceding Company or its liquidator,
rehabilitator, receiver, or statutory successor.
The expense incurred by the Reinsurer 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 that may accrue to the Ceding
Company solely as a result of the defense undertaken by the Reinsurer. 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 this Agreement as though
such expense had been incurred by the Ceding Company.
The Reinsurer will be liable only for the amounts reinsured and will not be or
become liable for any amounts or reserves to be held by the Ceding Company on
policies reinsured under this Agreement.
16.3 INSOLVENCY OF THE REINSURER
In the event of the Reinsurer's insolvency or the Reinsurer's RBC ratio falls
below 250% of the authorized control level, the Ceding Company may cancel the
Agreement for future new business and will notify the Reinsurer in writing of
its intent. The parties agree to waive the notification period for this
cancellation, and the effective date will be no earlier than the effective date
of the Reinsurer's insolvency.
Upon giving written notice to the Reinsurer, the Ceding Company may also
recapture all of the inforce business reinsured by the Reinsurer under this
Agreement subject to a mutually agreed recapture fee.
ERRORS AND OMISSIONS
17.1 If through unintentional error, oversight, omission, or misunderstanding
(collectively referred to as "errors"), the Reinsurer or the Ceding Company
fails to comply with the terms of this Agreement
15
and if, upon discovery of the error by either party, the other is promptly
notified, each thereupon will be restored to the position it would have occupied
if the error had not occurred, including interest. If it is not possible to
restore each party to the position it would have occupied but for the error, the
parties will endeavor in good faith to promptly resolve the situation in a
manner that is fair and reasonable, and most closely approximates the intent of
the parties as evidenced by this Agreement.
However, the Reinsurer will not provide reinsurance for policies that do not
satisfy the parameters of this Agreement, nor will the Reinsurer be responsible
for negligent or deliberate acts or for repetitive errors in administration by
the Ceding Company. If either party discovers that the Ceding Company has failed
to cede reinsurance as provided in this Agreement, or failed to comply with its
reporting requirements, the Reinsurer may require the Ceding Company to audit
its records for similar errors and to take the actions necessary to avoid
similar errors in the future.
DISPUTE RESOLUTION
18.1 In the event of a dispute arising out of or relating to this Agreement, the
parties agree to the following process of dispute resolution. Within 15 days
after the Reinsurer or the Ceding Company has first given the other party
written notification of a specific dispute, each party will appoint a designated
company officer to attempt to resolve the dispute. The officers will meet at a
mutually agreeable location as soon as possible and as often as necessary, in
order to gather and furnish the other with all appropriate and relevant
information concerning the dispute. The officers will discuss the problem and
will negotiate in good faith without the necessity of any formal arbitration
proceedings. During the negotiation process, all reasonable requests made by one
officer to the other for information will be honored. The designated officers
will decide the specific format for such discussions.
If the officers cannot resolve the dispute within 30 days of their first
meeting, the dispute will be submitted to formal arbitration, unless the parties
agree in writing to extend the negotiation period for an 30 days.
ARBITRATION
19.1 It is the intention of the Reinsurer and the Ceding Company that the
customs and practices of the life insurance and reinsurance industry will be
given full effect in the operation and interpretation of this Agreement. The
parties agree to act in all matters with the highest good faith. However, if the
Reinsurer and the Ceding Company cannot mutually resolve a dispute that arises
out of or relates to this Agreement, and the dispute cannot be resolved through
the dispute resolution process described in Article 18, the dispute will be
decided through arbitration as a precedent to any right of action hereunder.
To initiate arbitration, either the Ceding Company or the Reinsurer 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 fifteen (15) days of its receipt.
There will be three arbitrators who will be current or former officers of life
insurance or life reinsurance companies other than the parties to this
Agreement, their affiliates or subsidiaries. Each of the parties 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 (60) days
of the initiation of the arbitration, the other party may appoint the second
arbitrator. If the two arbitrators do not agree on a third arbitrator within
thirty (30) days of the appointment of the second arbitrator, then the
appointment of the third arbitrator will be left to the American Arbitration
Association.
16
Once chosen, the arbitrators are empowered to decide all substantive and
procedural issues by a majority of votes. The arbitration proceedings will be
held in Galveston, Texas. As soon as possible, the arbitrators will establish
arbitration procedures as warranted by the facts and issues of the particular
case. The arbitrators will have the power to determine all procedural rules of
the arbitration, including but not limited to inspection of documents,
examination of witnesses and any other matter relating to the conduct of the
arbitration. The arbitrators may consider any relevant evidence; they will weigh
the evidence and consider any objections. Each party may examine any witnesses
who testify at the arbitration hearing.
The arbitrators will base their decision on the terms and conditions of this
Agreement and the customs and practices of the life insurance and reinsurance
industries rather than on strict interpretation of the law. The decision of the
arbitrators will be made by majority rule and will be submitted in writing. The
decision will be final and binding on both parties and there will be no appeal
from the decision. Either party to the arbitration may petition any court having
jurisdiction over the parties to reduce the decision to judgment.
Unless the arbitrators decide otherwise, each party will bear the expense of its
own arbitration activities, including its appointed arbitrator and any outside
attorney and witness fees. The parties will jointly and equally bear the expense
of the third arbitrator and other costs of the arbitration.
This Article will survive termination of this Agreement.
CONFIDENTIALITY
20.1 Reinsurer hereby acknowledges that from time to time in the performance of
its duties and obligations under the Agreement, Reinsurer may receive certain
information about policyholders or certificateholders of Ceding Company that may
be characterized as "Nonpublic Personal Information" under Title V of the
federal ▇▇▇▇▇-▇▇▇▇▇-▇▇▇▇▇▇ Act and/or state insurance laws and/or regulations
enacted and/or promulgated in accordance therewith (collectively the "Privacy
Act"). "Nonpublic Personal Information' includes any personally identifiable
financial and/or health information about Ceding Company's customers, and any
list, description or other grouping of customers that is derived using any
personally identifiable information that is not publicly available.
Reinsurer and Ceding Company hereby acknowledge and agree that they are
"nonaffiliated third parties" with respect to one another for purposes of the
Privacy Act. Reinsurer and Ceding Company further acknowledge and agree that
Ceding Company's disclosure of nonpublic personal information to Reinsurer under
this Agreement is made under one or more exceptions to the Privacy Act's opt-out
or opt-in requirements. Reinsurer agrees not to disclose the nonpublic personal
information received from Ceding Company to any other person or to use the
nonpublic personal information received pursuant to this A except: (1) as
necessary in the ordinary course of business in order to carry out Reinsurer's
obligations under this Agreement; or (2) as allowed under a recognized exception
or permitted redisclosure under the Privacy Act. This provision shall survive
the termination of this Agreement.
20.2 The Ceding Company and the Reinsurer agree that Proprietary Information
will be treated as confidential. Proprietary Information includes, but is not
limited to, business plans and trade secrets, mortality and lapse studies,
underwriting manuals and guidelines, applications and contract forms, and the
specific terms and conditions of this Agreement.
Proprietary Information will not include information that:
a. is or becomes available to the general public through no fault of the party
receiving the Proprietary Information (the "Recipient");
b. is independently developed by the Recipient;
c. is acquired by the Recipient from a third party not covered by a
confidentiality agreement; or
d. is disclosed under a court order, law or regulation.
17
The parties will not disclose such information to any other parties unless
agreed to in writing, except as necessary for retrocession purposes, as
requested by external auditors, as required by court order, or as required or
allowed by law or regulation.
The Ceding Company acknowledges that the Reinsurer can aggregate data with other
companies reinsured with the Reinsurer as long as the data cannot be identified
as belonging to the Ceding Company.
DURATION OF AGREEMENT
21 .1 This Agreement is indefinite as to its duration. The Ceding Company or the
Reinsurer may terminate this Agreement with respect to the reinsurance of new
business by giving 30 days written notice of termination to the other party,
sent by certified mail. The first day of the notice period is deemed to be the
date the document is postmarked.
During the notification period, the Ceding Company will continue to cede and the
Reinsurer will continue to accept policies covered under the terms of this
Agreement. Reinsurance coverage on all reinsured policies will remain in force
until the termination or expiry of the policies or until the contractual
termination of reinsurance under the terms of this Agreement, whichever occurs
first.
EXECUTION
22.1 This Agreement is effective as of June 1, 2003, and applies to all eligible
policies with issue dates on or after such date, not withstanding that such
policies may have been backdated for up to six (6) months to save age. This
Agreement has been made in duplicate and is hereby executed by both parties.
American National Insurance Company ▇▇▇▇▇▇▇ Global Life ] Company
By____ By ____
sign (signature)
F
(print or type name) (print or type name)
Title: Title:
Date: Date:
Location: Galveston, TX Location:
Attest:______________________ Attest: __________________
(signature) (signature)
/4)/
Title: -` Title: if
18
EXHIBIT A
Retention Limits of the Ceding Company
A.!
(a) Life Insurance -- Maximum Limits of Retention
Issue Age
L 0-85
Standard
--Table [
700,000
(b) First Dollar Quota Share -- Ceding Company's Quota Share Percentage
The Ceding Company will retain 14.5% of each policy up to the above maximum
dollar retention limits.
A.2 WAIVER OF PREMIUM DISABILITY BENEFITS
Same as Life Insurance
A.3 ACCIDENTAL DEATH BENEFITS $250,000
19
EXHIBIT B
Plans Covered and Binding Limits
The business automatically reinsured under this Agreement is defined as follows.
B.! PLANS, RIDERS AND BENEFITS
Policies issued on plans with effective dates within the applicable period shown
below may qualify
for automatic reinsurance under the terms of this Agreement.
Commencement
Plan Identification Policy Form Date
Passport ▇▇ ▇▇▇▇ ▇▇▇▇ ▇, ▇▇▇▇
▇▇▇▇▇▇▇▇ Select I, Indiv. FPUL June 1, 2003
Advocate UL, Indiv. MLUL June 1, 2003
Passport Select II, Indiv. FPUL2 June 1, 2003
Passport Select II 60/40, Indiv. FPUL2U June 1, 2003
Passport Select II CCV, Indiv FPUL2 June 1, 2003
Passport Select II CCV 60/40, Indiv FPUL2U June 1, 2003
Passport UL Unisex PULU June 1, 2003
Passport Select I, 60/40 Indiv FPULU June 1, 2003
Advocate UL Unisex -- Indiv MLULU June 1, 2003
▇▇▇▇▇ ▇▇▇▇ June 1, 2003
Passport Select I, Group GFPULC June 1, 2003
Advocate UL, Group GMLULC June 1, 2003
Passport Select II, Group GFPUL2C June 1, 2003
Passport Select 1160/40, Group ▇▇▇▇▇▇▇▇▇▇▇▇ ▇, ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ 1,2003
Passport Select I 60/40, Group GFPULUC June 1, 2003
Advocate UL, Unisex Group GMLULUC June 1, 2003
Passport Accumulator UL DIUL June 1, 2003
Passport Select I Florida FPUL(14) June 1, ▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇, ▇▇▇▇▇▇▇ MLUL(14) June 1, 2003
Pension Universal PULU June 1, 2003
Passport Select I, Florida FPUL(14) June 1, 2003
Variable Universal Life FL89 June 1, 2003
Variable Universal Life II VULIP June 1, 2003
WealthQuest VUL Individual WQVUL June 1, 2003
WealthQuest VUL mdiv -- Unisex WQVULU June 1, 2003
WealthQuest VUL Group GWQVULP June 1, 2003
WealthQuest VUL Group - Unisex GWQVULPUJune 1, 2003
WealthQuest VUL Group Certificate GWQVULC June 1, 2003
WealthQuest VUL Group Cert -- Unisex GWQVULCUJune 1, 2003
Automatic Increase Benefit Rider WQAIB June 1, 2003
Automatic Increase Benefit Rider GWQAIB June 1, 2003
Level Term Rider SDL93 June 1, 2003
Level Term Rider (Passport Series) ULLT June 1, 2003
Level Term Rider ULLT93 June 1, 2003
Level Coverage Rider ▇▇▇▇ ▇▇▇▇ ▇, ▇▇▇▇
▇▇▇▇▇ ▇▇▇▇ Rider-- Unisex (Passport LTR June 1, 2003
Series)
Level Coverage Rider-- Unisex ULAC June 1, 2003
20
Commencement
Plan Identification Policy Form Date
Waiver of Premium Disability Benefits ULDW91 June 1, 2003
Waiver of Premium Disability Benefits WQVULDW June 1, 2003
Waiver of Premium Disability Benefits SVULDW June 1, 2003
Accidental Death Benefit ULADB83 June 1, 2003
B.2 BASIS
The Reinsurer's share will be 26.3 15790% of the total ceded amount on each
policy on a first dollar
quota share basis. This amount will not exceed the Reinsurer's share of the
maximum Automatic
Binding Limits specified in Exhibit B.3.
B.3 AUTOMATIC BINDING LIMITS
(a) Life
Total Pool Automatic Coverage Limits:
Issue Ages Standard (100%)-- Table 16 (500%)
0-85
$10,000,000
The Reinsurer's Share of the Total Pool Automatic Coverage:
I
Standard (100%) -- Table 16 (500%)
-I
0-85
$2,631,579
The (pool) maximum autobind amounts above exclude the Ceding Company's retention
(b) Waiver of Premium Disability Benefits: Same as for life insurance
(c) Accidental Death Benefits: $250,000
B.4 JUMBO LIMITS
The Ceding Company will not cede any risk automatically if, according to
information available to the Ceding Company, the total amount in force and
applied for on the life with all insurance companies, including any amount to be
replaced, exceeds the applicable amounts shown below.
(a) Life: $25,000,000
(b) Waiver of Premium Disability Benefits: Same as for life insurance
(c) Accidental Death Benefits: $250,000
21
B CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT
The amount of such coverage provided by the Reinsurer will be limited to its
share of the following amounts provided by the Ceding Company's Conditional
Receipt or Temporary Insurance Agreement.
Age Maximum Amount
0-85 The lessor of(l) Automatic Binding Limit in Exhibit B.3. and (2) the
amount less
the Maximum Retention in Exhibit A
B.6 CESSION LIMITS
(a) Minimum Initial Cession: Total amount ceded to all reinsurers must equal or
exceed $85500
(b) Trivial Amount: Total amount ceded to all reinsurers must equal or exceed
$25,000
22
Materials have been supplied to Reinsurer.
23
EXHIBIT C
Forms, Manuals and Issue Rules
Does not apply.
24
EXHIBIT D
Allocation Rules for Placement of Facultative Cases
EXHIBIT E
Reinsurance Premiums
E.1 LIFE
Plans covered under this Agreement will be reinsured on a YRT basis. Reinsurance
premiums will be based on the 75-80 Select & Ultimate (Male & Female) ALB rate
scale shown in this Exhibit E, minus the following discounts.
Plan(s)/Rider(s) Classification Discount %
Life Coverage Preferred Tobacco -- Non User 72% All Years
Standard Tobacco -- Non User 52% All Years
Standard Tobacco -- User 2% All Years
E.2 AGE BASIS
Age Last Birthday
E.3 POLICY FEES
The Reinsurer will not participate in any policy fees.
E.4 RECAPTURE PERIOD
Number of years: 10
E.5 STANDARD RATINGS
Premiums will be based on the standard rate increased by an extra 25% per table
of assessed rating.
Discounts are the same as those for standard life coverage.
Substandard table ratings will expire at the later of the end of the policy year
or the Insured's age 65.
E.6 EXTRAS
The total premium remitted to the Reinsurer will include the flat extra premium
minus the discounts shown below.
Type of Flat Extra Premium First Year Renewal
Temporary (1-5 years) 10% 10%
Permanent (6 years & greater) 75% 10%
E.7 RIDERS AND BENEFITS
Waiver of Premium
Reinsurance premiums will be 0% of the Ceding Company's premiums, as shown in
this Exhibit, in the first policy year and
90% in renewal years.
Accidental Death Benefit
Reinsurance premiums will be $0.25 per thousand in the first policy year and
$0.90 per thousand in renewal years.
PREMIUM RATES FOR PLANS, BENEFITS AND RIDERS
25
7580 ML
1 2 3 4 5 6 7 8 9 10 11 12 13
0 0.00112 0.0007 0.00047 0.00042 0.00037 0.00032 0.00031 0.00028 0.00027 0.00027 0.00028 0.00033
0.00038 0.00046 0.00066 0.00085 15
1 0.00046 0.00043 0.00038 0.00033 0.00027 0.00023 0.00023 0.00023 0.00025 0.00028 0.00033 0.00038
0.00046 0.00066 0.0008 0,00108 16
2 0.00034 0.00035 0.00031 0,00026 0.00023 0.00023 0.00023 0.00025 0.00028 0.00033 0.00038 0.00046
0.00062 0.0008 0.00104 0.00118 17
3 0.00033 0.00028 0.00025 0.00023 0.00023 0.00021 0.00025 0.00028 0.00033 0.00038 0.00046 0.00061
0.00074 0.00104 0.00117 0.00127 18
4 0.00028 0.00024 0.00023 0.00023 0.00021 0.00025 0.00028 0.00033 0,00038 0.00044 0,00061 0.00074
0.00095 0.00111 0.00126 0.00134 19
5 0.00023 0.00023 0.00023 0.00021 0.00025 0.00028 0.00033 0.00038 0.00043 0.00061 0.00074 0.00095
0.00108 0.00117 0.00132 0.00139 20
6 0.00022 0.00022 0.00021 0.00025 0.00028 0.00033 0.00038 0.00043 0.00058 0.00074 0.00095 0.00108
0.00115 0.00121 0.00136 0.00141 21
7 0.00019 0.00021 0.00025 0.00028 0.00033 0.00038 0.00043 0.00057 0.00072 0.O0091 0.00108 0.00115
0.0012 0.00123 0.00138 0.00141 22
8 0.00019 0.00021 0.00026 0.00032 0.00037 0.00043 0.00057 0.00072 0.00091 0.00106 0.00115 0.0012
0.00123 0.00128 0.00137 0.00139 23
9 0.0002 0.00023 0.0003 0.00036 0.00043 0.00057 0.00072 0.00091 0.00106 0.00114 0.0012 0.00123
0.00128 0.00132 0.00134 0.00136 24
10 0.00021 0.00027 0.00034 0.00042 0.00057 0.00072 0.00091 0.00106 0.00114 0.00119 0.00123 0.00128
0.00132 0.00133 0.0013 0.00132 25
11 0.00026 0.00032 0.0004 0.00057 0.00072 0.00091 0.00106 0.00114 0.00119 0.00123 0.00128 0.00132
0.00133 0.00128 0.00125 0.00127 26
12 0.00031 0.0004 0.00057 0.00072 0.0009 0.00106 0.00114 0.00119 0.00122 0.00128 0.00132 0.00133
0.00128 0.00123 0.00119 0.00122 27
13 0.00038 0.00057 0.00072 0.0009 0.00102 0.00112 0.00118 0.00121 0.00122 0.00126 0.00128 0.00128
0.00123 0.00118 0.00115 0.00119 28
14 0.00055 0.00072 0.0009 0.00102 0.00108 0.00116 0.0012 0.00121 0.0012 0.00122 0.00122 0.00122
0.00117 0.00114 0.00113 0.00116 29
15 0.00072 0.0009 0.00102 0.00108 0.00113 0.00117 0.0012 0.00119 0.00117 0.00117 0.00116 0.00116
0.00112 0.00111 0.00111 0.00113 30
16 0.0009 0.00102 0.00108 0.00113 0.00117 0.00117 0.00118 0.00115 0.00113 0.00111 0.0011 0.00109
0.00108 0.00109 0.00109 0.00112 31
17 0.00102 0.00108 0.00113 0.00117 0.00116 0.00114 0.00114 0.00111 0.00108 0.00105 0.00103 0.00105
0.00104 0.00106 0.00109 0.00112 32
18 0.00101 0.00106 0.00109 0.00111 0.0011 0.00107 0.00107 0.00104 0.00101 0.00099 0.00099 0.00101
0.001 0.00104 0.00109 0.00113 33
19 0.00097 0.00101 0.00102 0.00104 0.00102 0.001 0.00099 0.00096 0.00095 0.00095 0.00096 0.00097
0.00098 0.00103 0.00109 0.00116 34
20 0.00091 0.00094 0.00094 0.00095 0.00094 0.00093 0.00091 0.00089 0.0009 0.00091 0.00093 0.00095
0.00098 0.00103 0.00112 0.0012 35
21 0.00083 0.00085 0.00085 0.00086 0.00086 0.00085 0.00083 0.00086 0.00086 0.00087 0.00091 0.00094
0.00097 0.00105 0.00116 0.00125 36
22 0.00073 0.00075 0.00075 0.00076 0.00077 0.00077 0.00077 0.00078 0.00081 0.00085 0.0009 0.00094
0.00099 0.00108 0.0012 0.00132 37
23 0.00073 0.00074 0.00074 0.00075 0.00076 0.00077 0.00077 0.00078 0.00082 0.00087 0.00092 0.00098
0.00104 0.00114 0.00127 0.00141 38
24 0.00073 0.00073 0.00073 0.00074 0.00076 0.00077 0.00078 0.0008 0.00084 0.0009 0.00096 0.00103
0.0011 0.00122 0.00136 0.00151 39
25 0.00071 0.00071 0.00072 0.00074 0.00075 0.00077 0.0008 0.00082 0.00087 0.00095 0.00101 0.00109
0.00118 0.00133 0.00147 0.00163 40
26 0.0007 0.00069 0.00071 0.00073 0.00075 0.00078 0.00082 0.00085 0.00092 0.001 0.00107 0.00116
0.00129 0.00144 0.00159 0.00179 41
27 0.00068 0.00068 0.00071 0.00073 0.00076 0.0008 0.00085 0.0009 0.00097 0.00107 0.00115 0.00126
0.0014 0.00158 0.00175 0.00197 42
28 0.00066 0.00068 0.00072 0.00076 0.0008 0.00084 0.0009 0.00097 0.00106 0.00115 0.00126 0.00138
0.00153 0.00174 0.00194 0.00219 43
29 0.00065 0.00068 0.00075 0.0008 0.00084 0.0009 0.00097 0.00106 0.00115 0.00126 0.00138 0.00152
0.0017 0.00194 0.00217 0.00245 44
30 0.00063 0.00068 0.00078 0.00084 0.0009 0.00097 0.00106 0.00115 0.00125 0.00138 0.00152 0.0017
0.00194 0.00217 0.00242 0.00274 45
31 0.00063 0.0007 0.00082 0.0009 0.00097 0.00106 0.00115 0.00125 0.00138 0.00152 0.0017 0.00194
0.00217 0.00242 0.00271 0.00307 46
32 0.00063 0.00072 0.00087 0.00097 0.00106 0.00115 0.00125 000 0.00151 0.0017 0.00194 0.00217
0.00242 0.00271 0.00303 0.00343 47
33 0.00063 0.00074 0.00091 0.00103 0.00114 0.00125 0.00136 0.0016 0.00167 0.00187 0.00214 0.00241
0.00269 0.00303 0.00339 0.00382 48
34 0.00064 0.00076 0.00096 0.00111 0.00124 0.00136 0.00149 0.00166 0.00186 0.0021 0.00237 0.00267
0.003 0.00338 0.00377 0.00424 49
35 0,00065 0.00079 0.00103 0.0012 0.00135 0.00149 0.00166 0.00186 0.0021 0.00233 0.00263 0.00296
0.00334 0.00375 0.00419 0.00469 50
36 0.00067 0.00083 0.00112 0.00131 0.00149 0.00166 0,00186 0.0021 0.00233 0,00263 0.00292 0.00328
0.0037 0.00416 0.00463 0.00518 51
37 0.0007 0.00088 0.00121 0.00144 0.00166 0.00186 0.0021 0.00233 0.00263 0.00292 0.00323 0.00362
0.00409 0.00459 0.00512 0.00572 52
38 0.00074 0.00094 0.001 29 0.001 550.00178 0.00201 0.00227 0.00252 0.00284 0.00316 0.00352 0.00396
0.00449 0.00506 0.00564 0.00631 53
39 0.00078 0.001 0.0014 0.00168 0.00193 0.00218 0.00245 0.00272 0.00306 0.00341 0.00382 0.00431
0.00492 0.00557 0.00622 0.00694 54
40 0.00083 0.00109 0.00153 0.00183 0.00211 0.00236 0.00265 0.00293 0.00327 0.00367 0.00412 0.00469
0.00539 0.00613 0.00682 0.00764 55
41 0.00089 0.0012 0.00168 0.00201 0.00229 0.00256 0.00286 0.00314 0.00349 0.00392 0.00445 0.00509
0.0059 0.00672 0.0075 0.00842 56
42 0.00097 0.00132 0.00186 0.00221 0.0025 0.00277 0.00306 0.00335 0.0037 0.00418 0.00479 0.00553
0.00644 0.00738 0.00825 0.00928 57
43 0.001 05 0.001 46 0.00202 0.00241 0.00274 0.00304 0.00335 0.00366 000403 0.00455 0.00521 0.00599
0.00696 0.00797 0.00893 0.01 024 58
44 0.00114 0.00162 0.0022 0.00263 0.00298 0.00332 0.00366 0.00398 0.00439 0.00494 0.00566 0.0065
0.00754 0.0086 0.00967 0.01132 59
45 0.00123 0.00181 0.00239 0.00285 0.00324 0.00361 0.00398 900434 0.00477 0.00 0.00615 0.00706
0.00816 0.0093 0.01049 0.01253 60
46 0.00133 0.002 0.00258 0.00308 0.00351 0.00392 0.00434 0.00473 0.00517 0.0058 0.00668 0.00766
0.00883 0.01006 0.01139 0.01387 61
47 0.00144 0.00221 0.00277 0.00331 0.00379 0.00426 0.00473 0.00512 0.00561 9.00629 0.00726 0.00832
0.00958 0.01089 0.01236 0.01532 62
48 0.00155 0.00232 0.0029 0.00348 0.00402 0.00453 0.00506 0.00554 0.00613 0.00689 0.00804 0.00923
0.01057 0.01194 0.01341 0.01689 63
7580 FL
1 2 3 4 5 6 7 8 9 10 11 12 13
14 15UIt.
0 0.00084 0.00033 0.0003 0.00027 0.00024 0.00022 0.0002 0.00018 0.00019 0.00019 0.00021 0.00023
0.00026 0.00029 0,00034 0.00038 15
1 0.00032 0.00029 0.00026 0.00023 0.00022 0.0002 0.00018 0.00019 0.00019 0.00021 0.00023 0.00026
0.00029 0,00034 0.00038 0.00042 16
2 0.00027 0.00026 0.00023 0.00022 0.0002 0.00018 0.00019 0.00019 0.00021 0.00023 0.00026 0.00029
0.00034 0.00038 0.00042 0.00046 17
3 0.00023 0.00023 0.00022 0.0002 0.00018 0.00019 0.00019 0.00021 0.00023 0.00026 0.00029 0.00034
0.00036 0.00041 0.00045 0.00048 18
4 0.00021 0.00021 0.0002 0.00018 0.00019 0.00019 0.00021 0.00023 0.00026 0.00029 0.00034 0.00038
0.00041 0.00045 0.00048 0.0005 19
5 0.0002 0.0002 0.00018 0.00019 0.00019 0.00021 0.00023 0.00026 0.00029 0.00034 0.00038 0.00041
0.00045 0.00048 0.00049 0.00052 20
6 0.00018 0.00018 0.00019 0.00019 0.00021 0.00023 0.00026 0.00029 0.00034 0.00038 0.00041 0.00045
0.00048 0.00049 0.00051 0.00053 21
7 0.00017 0.00019 0.00019 0.00021 0.00023 0.00026 0.00029 0.00034 0.00038 0.00041 0.00045 0.00048
0.00049 0.00051 0.00052 0.00053 22
8 0.00017 0.00019 0.00021 0.00023 0.00026 0.00029 0.00034 0.00038 0.00041 0.00045 0.00047 0.00049
0.00051 0.00052 0.00053 0.00053 23
9 0.00017 0.00021 0.00023 0.00025 0.00028 0.00033 0.00038 0.00041 0.00045 0.00047 0.00049 0.00051
0.00052 0.00053 0.00053 0.00053 24
10 0.00018 0.00023 0.00025 0.00028 0.00033 0.00037 0.00041 0.00045 0.00047 0.00049 0.00051 0.00052
0.00053 0.00053 0.00053 0.00053 25
11 0.00018 0.00025 0.00028 0.00033 0.00037 0.00041 0.00045 0.00047 0.00049 0.00051 0.00052 0.00053
0.00053 0.00053 0.00053 0.00053 26
12 0.0002 0.00028 0.00033 0.00036 0.0004 0.00044 0.00047 0.00049 0.00051 0.00052 0.00053 0.00053
0.00053 0.00053 0.00054 0.00053 27
13 0.00022 0.00032 0.00035 0.00038 0.00042 0.00044 0.00047 0.00049 0.00052 0.00052 0.00053 0.00053
0.00053 0.00053 0.00054 0.00054 28
14 0.00026 0.00034 0.00038 0.0004 0.00042 0.00045 0.00047 0.00049 0.00052 0.00052 0.00053 0.00053
0.00053 0.00054 0.00054 0.00055 29
15 0.0003 0.00036 0.00039 0.0004 0.00042 0.00045 0.00047 0.00047 0.00052 0.00053 0.00053 0.00053
0.00054 0.00054 0.00056 0.00057 30
16 0.00033 0.00037 0.00039 0.0004 0.00042 0.00044 0.00045 0.00046 0.00052 0.00053 0.00053 0.00054
0.00054 0.00056 0.00057 0.0006 31
17 0.00036 0.00037 0.00039 0.0004 0.00041 0.00042 0.00043 0.00044 0.00052 0.00053 0.00054 0.00054
0.00056 0.00057 0.00061 0.00063 32
18 0.00036 0.00037 0.0004 0.0004 0.00041 0.00042 0.00043 0.00044 0.00051 0.00052 0.00054 0.00055
0.00057 0.0006 0.00064 0.00068 33
19 0.00036 0.00037 0.0004 0.0004 0.00041 0.00042 0.00043 0.00045 0.00049 0.00051 0.00055 0.00057
0.0O06 0.00064 0.00069 0.00074 34
20 0.00035 0.00037 0.00039 0.0004 0.00041 0.00042 0.00044 0.00045 0.00048 0.00051 0.00057 0.0006
0.00064 0.00069 0.00075 0.00081 35
21 0.00034 0.00035 0.00038 0.00039 0.00041 0.00042 0.00044 0.00046 0.00048 0.00052 0.0006. 0.00064
0.00069 0.00075 0.00082 0.00089 36
22 0.00032 0.00034 0.00037 0.00039 0.00041 0.00042 0.00045 0.00047 0.00048 0.00053 0.00064 0.00069
0.00075 0.00082 0.0009 0.00098 37
23 0.00032 0.00034 0.00038 0.0004 0.00042 0.00044 0.00047 0.00048 0.00053 0.00058 0.00069 0.00075
0.00082 0.0009 0.001 0.001 09 38
24 0.00032 0.00035 0.00038 0.00041 0.00044 0.00046 0.00048 0.00053 0.00058 0.00063 0.00075 0.00082
0.0009 0.001 0.00111 0.00122 39
25 0.00031 0.00035 0.00039 0.00043 0.00046 0.00048 0.00053 0.00058 0.00063 0.00068 0.00082 0.0009
0.001 0.00111 0.00123 0.00137 40
26 0.00031 0.00035 0.00041 0.00044 0.00048 0.00053 0.00058 0.00063 0.00068 0.00074 0.0009 0.001
0.00111 0.00123 0.00138 0.00154 41
27 0.00031 0.00036 0.00042 0.00047 0.00053 0.00058 0.00063 0.00068 0.00071 0.00082 0.001 0.00111
0.00123 0.00138 0.00154 0.00171 42
28 0.00032 0.00037 0.00043 0.0005 0.00056 0.00063 0.00068 0.00071 0.000 0.00091 0.00111 0.00123
0.00138 0.00154 0.00171 0.00188 43
29 0.00033 0.00038 0.00046 0.00052 0.0006 0.00068 0.00071 0.0008 0.00091 0.00103 0.00123 0.00138
0.00154 0.00171 0.00188 0.00205 44
30 0.00035 0.0004 0.00048 0.00057 0.00066 0.00071 0.0O08 0.00091 0.00103 0.00115 0.00138 0.00154
0.00171 0.00188 0.00205 0.00224 45
31 0.00037 0.00042 0.00052 0.00062 0.00071 0.0008 0.00091 0.00103 0.00115 0.00127 0.00154 0.00171
0.00188 0.00205 0.00224 0.00243 46
32 0.00039 0.00045 0.00056 0.00068 0.0008 0.00091 0.00103 0.00115 0.00127 0.0014 0.0017 0.00187
0.00205 0.00224 0.00244 0.00262 47
33 0.00041 0.00048 0.00059 0.00073 0.00086 0.00099 0.00114 0.00127 0.0014 0.00156 0.00185 0.00202
0.00222 0.00243 0.00262 0.00283 48
34 0.00043 0.00051 0.00063 0.00077 0.00093 0.00109 0.00125 0.0014 0.00156 0.00173 0.002 0.00219
0.00239 0.00262 0.00283 0.00305 49
35 0.00045 0.00054 0.00066 0.00083 0.00101 0.0012 0.00139 0.00156 0.00173 0.0019 0.00217 0.00236
0.00256 0,00282 0.00305 0.0033 50
36 0.00047 0.00058 0.00071 0.0009 0.0011 0.00132 0.00152 0.00171 0.0019 0.00209 0.00233 0.00253
0.00275 0.00304 0.0033 0.00357 51
37 0.0005 0.00062 0.00076 0.00098 0.0012 0.00143 0.00164 0.00185 0.00207 0.00228 0.00249 0.00271
0.00294 0.00329 0.00357 0.00388 52
38 0.00054 0.00069 0.00085 0.0011 0.00133 0.00157 0.00178 0.00201 0.00223 0.00244 0.00267 0.00289
0.00315 0.00353 0.00384 0.00422 53
39 0.00058 0.00076 0.00095 0.001 220.00145 0.0017 0.001 93 0.00217 0.00239 0.00262 0.00285 0.0031
0.00337 0.0038 0.00413 0.0046 54
40 0.00063 0.00085 0.00105 0.00133 0.00158 0.00186 0.00208 0.00232 0.00256 0.0028 0.00306 0.00333
0.00362 0.0041 0.00446 0.00502 55
41 0.00068 0.00094 0.00115 0.00145 0.00171 0.00201 0.00223 0.00249 0.00274 0.00301 0.00328 0.00355
0.0039 0.00444 0.00481 0.00547 56
42 0.00073 0.00102 0.00125 0.00158 0.00185 0.00216 0.0024 0.00267 0.00294 0.00323 0.00353 0.00386
0.0042 0.0048 0.00519 0.00596 57
43 0.00078 0.00109 0.00135 0.00167 0.00195 0.00227 0.00253 0.00283 0.00313 0.00346 0.00379 0.00416
0.00454 0.00519 0.00562 0.0065 58
44 0.00083 0.00116 0.00144 0.00174 0.00206 0.00237 0.00267 0.00301 0.00334 0.0037 0.00408 0.00449
0.00489 0.00561 0.00609 0.00708 59
45 0.00089 0.00123 0.00153 0.00183 0.00216 0.00249 0.00283 0.0032 0.00357 0.00397 0.00439 0.00483
0.00528 0.00607 0.0066 0.00769 60
46 0.00093 0.0013 0.00162 0.00191 0.00228 0.00261 0.003 0.00341 0.00382 0.00426 0,00472 0.0052
0.0057 0.00655 0.00712 0.00834 61
47 0.00098 0.00137 0.00172 0.002 0.00241 0.00275 0.00318 0.00364 0.00409 0.00457 0.00507 0.0056
0.00614 0.00706 0.00768 0.00903 62
48 0.00103 0.00143 0.0018 0.0021 0.00254 0.00292 0.0034 0.00391 0.00436 0.00487 0.00541 0.00597
0.00653 0.0075 0.00814 0.00977 63
EXHIBIT F
Conversion Premiums
Premium rates for conversions to plans not covered by an existing agreement with
the Reinsurer, shall be the same as the rates defined in Exhibit E of this
agreement.
26
EXHIBIT G
Self-Administered Reporting
G.1
The Ceding Company will self-administer all reinsurance reporting. The Ceding
Company will send the Reinsurer the reports listed below at the frequency
specified.
Transaction Reports: Monthly
1. New Business
2. First Year -- Other than New Business
3. Renewal Year
4. Changes and Terminations
5. Accounting Information
Periodic Reports Quarterly
6. Statutory Reserve Information
7. Policy Exhibit Information
8. Inforce
A brief description of the data requirements follows below.
Transaction Reports
The Ceding Company agrees to report policy data electronically using the TAT
system.
1. New Business
This report will include new issues only, the first time the policy is reported
to the Reinsurer. Automatic and Facultative business will be identified
separately.
2. First Year -- Other than New Business
This report will include policies previously reported on the new business detail
and still in their first duration, or policies involved in first year premium
adjustments.
3. Renewal Year
All policies with renewal dates within the Accounting Period will be listed.
4. Changes and Terminations
Policies affected by a change during the current reporting period will be
included in this report. Type of change or termination activity must be clearly
identified for each policy.
The Ceding Company will identify the following transactions either by separate
listing or unique transaction codes:
Terminations, Reinstatements, Changes, Conversions, and Replacements. For
Conversions and Replacements, the Ceding
Company will report the original policy date, as well as the current policy
date.
5. Accounting Information
Premiums and allowances will be summarized for Life coverages, Benefits, and
Riders by the following categories: Automatic and Facultative, First Year and
Renewals.
Periodic Reports
6. Statutory and Tax Reserve Information
Statutory and tax reserves will be summarized for Life coverages, Benefits and
Riders. The Ceding Company will specify the reserve basis used. The Ceding
Company's actuary will provide an annual certification of reserves by January
31. Tax reserves will be provided by June 1.
7. Policy Exhibit Information
This is a summary of transactions during the current period and on a
year-to-date basis, reporting the number of policies and reinsured amount.
8. Inforce
This is a detailed report of each policy in force.
27
EXHIBIT H
Application for Facultative Reinsurance
Submitted to: [ 1] [ 2]
[ 3] [ 4]
From: [ Company] Date: [ Date]
Policy Number: [ Policy Number] Increasing Amount: E Yes 0 No
Plan Name: [ Plan Name] If increasing, ultimate amount: [ Amount]
Birth date Tobacco
LastName First Middle M/D/Y Sex Use Pref Class
Enter Name) [ Name] [ [ [ [ [ Joint insured
Enter Name) [ Name] [ EEMM/DD EM/F] [ [
Specify others, e.g. Second
Life Life, Waiver, ADB, etc.
Previous inforce with Co.: [ [ [
Of which we retain:
[
[
[
Now applying for:
[
[
[
Of which we will retain:
[
[
[
Reins. Amount Applied for: [ [ [
In excess of Jumbo: 0 Yes 0 No If Replacement: 0 Internal 0 External
Our Mortality Assessment: [ Special Risk Features:
(table &/or flat extra) 0 Aviation
o Foreign/Travel
o Occupation/Avocation
Enclosed Requirements: [
Requirements to follow: [
Remarks: [ Remarks]
Underwriting Contact: [ Tel #: [
e-mail: [
28
EXHIBIT I
Contestable Claims Procedures
The following claim paying procedures shall be applied to contestable claims of
policies issued by the Ceding Company:
CLAIMS UP TO $200,000: These claims shall be adjudicated and paid by the Ceding
Company without consultation with any Reinsurers sharing in the ceded risk (Pool
Reinsurers). Pool Reinsurers will receive an initial claim notification.
Requests for payment will include a death certificate and proof of payment only.
CLAIMS FROM $200,001 TO $999,999: All Pool Reinsurers shall receive an initial
claim notification, which will identify the Lead Reinsurer on the claim. If the
claim is contestable, the Ceding Company shall send underwriting and
investigation data to the assigned Lead Reinsurer. The Ceding Company shall only
consult with the Lead Reinsurer before making a decision. If the Lead Reinsurer
and the Ceding Company agree that the claim is payable, then the claims will be
paid. The Ceding Company will then submit their claim to the remaining Pool
Reinsurers along with the death certificate, the proof of payment, and a copy of
the communication between the Lead Reinsurer and the Ceding Company that the
claim is payable.
CLAIMS OF $1,000,000 AND OVER: All Pool Reinsurers shall be involved in the
review of the claim and will receive copies of all documents. Each Reinsurer
shall be consulted prior to payment of the claim. CLAIM DENIALS OR REDUCED
BENEFITS DUE TO SUICIDE: In either of these situations, each member of the Pool
will be advised of the planned action. Each Pool Member will make the decision
of either going with the prevailing claims decision, or will ask for copies of
the claim file for their own review.
Lead Claim Reinsurers may need to confer with the other Pool Reinsurers on
unusually complex claim situations.
LEAD CLAIM RE1NSUIRERS
Lead Reinsurer
Lead Claim
Alpha Split
RGA
A-F
Swiss Re
G-M
Munich
N-T
▇▇▇▇▇▇▇
U-Z
29