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EXHIBIT 10.4
AUTOMATIC REINSURANCE AGREEMENT NO. 1
Between
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
(hereinafter referred to as the "Company")
and
WMA LIFE INSURANCE COMPANY LIMITED
(hereinafter referred to as the "Reinsurer")
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TABLE OF CONTENTS
PAGE
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ARTICLE TITLE
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I. BASIS OF REINSURANCE 3
II. DEFINITIONS 4
III. COMMENCEMENT AND TERMINATION OF LIABILITY 9
IV. THE AMOUNT REINSURED AND THE COMPANY AMOUNT AT RISK 10
V. REINSURANCE PREMIUMS 14
VI. REINSURANCE ALLOWANCES 15
VII. INITIAL CEDING ALLOWANCE FOR EACH BLOCK 16
VIII. REIMBURSEMENT FOR TAXES 16
IX. INITIAL SETTLEMENT AND SUBSEQUENT ACCOUNTING 16
X. REPORTING 18
XI. REDUCTIONS 20
XII. FUNDS HELD, LETTER OF CREDIT 20
XIII. REDUCTION OF REINSURANCE BY COMPANY (RECAPTURE) 23
XIV. REINSTATEMENTS 25
XV. POLICY CHANGES 25
XVI. SETTLEMENT OF CLAIMS 25
XVII. RECORDS 30
XVIII. DAC TAX (Section 1.848-2(g)(8) Election) 31
XIX. OVERSIGHTS - CLERICAL ERRORS 32
XX. INSOLVENCY 32
XXI. ARBITRATION 34
XXII. PARTIES TO AGREEMENT 35
XXIII. DURATION OF REINSURANCE AND TERMINATION OF AGREEMENT 36
XXIV. WRITTEN NOTICE 37
XXV. OFFSET 38
XXVI. ASSIGNMENT OF REINSURANCE 38
XXVII. ENTIRE AGREEMENT 39
XXVIII. COMPANY'S PRACTICES, FORMS 39
XXIX. HEADINGS 40
XXX. EXECUTION OF AGREEMENT 40
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This Agreement is entered into by the Company and the Reinsurer on the
Execution Date. The reinsurance under this Agreement is effective for each Block
as of the respective dates shown in Exhibit A, as described in Article III. In
consideration of the mutual covenants contained in this Agreement, the parties
agree as follows:
ARTICLE I. BASIS OF REINSURANCE
1. Reinsurance Coverage. On and after the respective Effective Dates set
forth for each Block in Exhibit A, the Company shall cede and the
Reinsurer shall reinsure certain individual life insurance coverages as
stated in Exhibit A which have been or are to be issued directly by the
Company on lives on the plans set forth in Exhibit A, including any
accelerated death benefit rider set forth in Exhibit A. Only plans sold
by and through agents of Producer registered with WMA Securities, Inc.
shall be reinsured under this Agreement.
2. Type of Reinsurance. The reinsurance under this Agreement shall be on
the monthly renewable term plan. The Reinsurance Premiums shall be
payable on a monthly renewable term basis as described in Article V.
3. Automatic Basis. All reinsurance under this Agreement shall be on an
automatic basis. The Reinsurer shall automatically accept such
Reinsurance on the terms provided in Exhibit A.
4. Reinsurance Outside This Agreement. The Company retains the right to
reinsure, with any reinsurer, any or all of its plans or coverages
automatically in excess of the Company's normal retention and
facultatively, where appropriate. The Company shall cede and the
Reinsurer shall reinsure lives as described in Paragraph 1 of this
Article, notwithstanding such Outside Reinsurance except as provided in
Paragraph 5(a) of this Article.
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5. Exceptions to Reinsurance Coverage.
a) Below Normal Retention. Reinsurance shall not be ceded under
this Agreement on any insured person if as a result of Outside
Reinsurance the Company keeps less than its normal retention
on such life. For purposes of this Paragraph, the Company's
normal retention means the Company's retention amounts under
the Company's current practices as may be in effect from time
to time. The Company's normal retention amounts on the
Execution Date are set forth in Exhibit A.
b) Exchanges. A policy or rider shall not be reinsured under this
Agreement if it is issued as an Exchange of a policy or rider
which is not reinsured under this Agreement. A policy or rider
otherwise eligible for reinsurance under this Agreement and
issued as an Exchange of a policy or rider which is reinsured
under this Agreement may be reinsured under this Agreement
only with the written consent of the Reinsurer.
c) Minimum Cession Amount. No reinsurance shall be ceded under
this Agreement on a life if the Amount Reinsured to be ceded
is less than $3,500.
ARTICLE II. DEFINITIONS. Any defined term used in this Agreement shall have the
meaning ascribed to it in this Article. Any term not defined in this Agreement
which is in general usage in the life reinsurance industry shall be given the
same meaning as such general usage ascribes to that term, giving due
consideration to the context in which the term is used in this Agreement.
"AMOUNT REINSURED" OR "AMOUNT REINSURANCE" means the amount of
reinsurance ceded by the Company to the Reinsurer under this Agreement on the
life of an insured person. It is the amount of life insurance ceded for which
the Reinsurer is at
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risk under this Agreement on the life of the insured person. The Amount
Reinsured per insured life is calculated as set forth in Paragraph 1 of Article
IV.
"ARTICLE" OR "PARAGRAPH" refers to an Article or Paragraph of this
Agreement.
"BLOCK" means a defined group of reinsured policies (including
reinsured riders, if applicable) having Policy Dates within a certain time
period, as set forth in Exhibit A.
"CLAIMS RATIO" is a ratio used to determine the Reinsurer's share of
liability for certain items in Article XVI relating to a claim under a reinsured
policy or rider. The numerator of the ratio is the Amount Reinsured on which
Reinsurance Premiums have been computed. The denominator is the amount of the
death benefit, as defined in the reinsured policy (and/or reinsured rider, if
applicable), minus the cash value of the reinsured policy.
"CLOSED BLOCK" means a Block which consists of in-force policies on
the Block's Effective Date. Closed Block refers to Block 1. If a Policy
otherwise eligible to be included in the Closed Block is not in force on the
Effective Date, it shall not be included in the Closed Block and shall not be
ceded under this Agreement, even if the Policy or Rider is subsequently
reinstated.
"COMPANY AMOUNT AT RISK" on any insured person means the amount for
which the Company is at risk on the life of the insured person, before giving
any effect to reinsurance under this Agreement. The Company Amount at Risk on an
insured person is calculated as set forth in Paragraph 2 of Article IV. The
Company Amount at Risk is the amount retained by the Company net of any risk
ceded by the Company on the life of the insured person under any Outside
Reinsurance.
"EFFECTIVE DATE" of the Closed Block means, with respect to Reinsured
Plans of the Closed Block, the date shown in
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Exhibit A on which reinsurance under this Agreement becomes effective. The
Company is liable for Reinsurance Premiums, less applicable Reinsurance
Allowances, due on or after the Effective Date of a Reinsured Plan within the
Block; and the Reinsurer is liable for any reinsured deaths occurring on or
after the Effective Date.
"EXCHANGE" means a policy or rider issued by the Company in exchange
for, or as a conversion of, an in-force policy or rider on the same life under
an Exchange Program.
"EXCHANGE PROGRAM" means an offer by the Company to a class of
policyowners or insured persons to issue an Exchange policy or rider on terms or
conditions materially different from the terms and conditions on which the
Company would offer the same policy form or rider form under its normal
practices for new business such that the risk or benefits borne by the Company
under the Exchange policy or rider are materially different. The altered terms
or conditions under an Exchange Program may include, for example, but are not
limited to, an offer by the Company to the eligible class: to waive evidence of
insurability or certain policy contract provisions; to retain the original
policy date or original effective date of the rider; or to alter or waive
material underwriting or issuance practices or requirements.
"EXECUTION DATE" means the date as of which this Agreement has been
executed, as shown in Article XXX.
"EXHIBIT" AND "SCHEDULE" mean, respectively, an exhibit or schedule
attached to this Agreement and shall be considered part of this Agreement.
"INITIAL CEDING ALLOWANCE" means any one-time consideration the
Reinsurer shall pay the Company for each Reinsured Plan within a Block, in
consideration for the Reinsurer being allowed to reinsure the Block, as provided
in Article VII. The amount of the Initial Ceding Allowance, if any, for each
Block is set forth in Exhibit A.
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"INITIAL SETTLEMENT DATE" of a Block coincides with the Execution Date
or the Effective Date of the applicable Block, if later. It is the date as of
which the initial settlement is made by the parties with regard to the Closed
Block, as described in Article IX, Paragraph 1.
"INSOLVENCY" of a party means the filing or involuntary filing of a
petition for bankruptcy of the party; the commencement of any legal action for
an assignment for the benefit of creditors of the party or similar legal action;
the entry of any preliminary or final order by any regulatory authority or
administrative agency placing the party under supervision, rehabilitation,
liquidation, conservatorship, guardianship or other administrative finding of,
or proceeding arising from, the party's financial impairment or financial
insolvency.
"MONTHIVERSARY" has the same meaning ascribed to it in a reinsured
policy. It is the day of each calendar month coinciding with a policy's Policy
Date.
"OPEN BLOCKS" refers collectively to Block 2 and 3. "OPEN BLOCK" refers
individually to Block 2 or Block 3.
"OUTSIDE REINSURANCE" means any other facultative or automatic
reinsurance the Company has ceded or may cede to other reinsurers on lives
insured by the Company under the plans set forth in Exhibit A. "OUTSIDE
REINSURER" means any other reinsurer providing outside Reinsurance to the
Company.
"PARTY" OR "PARTY" refers to either the Company or the Reinsurer as
appropriate, and "PARTIES"" refers to both collectively.
"POINT IN SCALE" means that the Reinsurance Premium Rates set forth in
Schedule I shall be applied at the Reinsurance Premium Rate appropriate for the
current duration of the policy or rider coverage, even though reinsurance of the
policy or
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rider may commence later than the original Policy Date or the effective date of
the reinsured rider. For example, in the case of a unchanged policy dated June
1, 1993 which becomes reinsured under this Agreement as of June 1, 1996: because
that policy begins its fourth policy year on June 1, 1996, the Reinsurance
Premium Rate charged under this Agreement for June, 1996 will be at the
appropriate Reinsurance Premium Rate set forth in Table I for the fourth policy
year based on the insured's original issue age.
"POLICY DATE" means the Policy Date as set forth in the Policy Schedule
of a reinsured policy. It is the date coverage is effective under the Policy and
the date monthly deductions commence under the Policy. Policy months, years,
Monthiversaries and anniversaries are measured from the Policy Date.
"PRODUCER" means World Marketing Alliance, Inc. And WMA Securities,
Inc.
"RECORD DATE" means the Record Date as set forth on Page 3 of the
reinsured policy. It is the date the policy is recorded on the Company's books
as an in-force policy.
"REINSURANCE ALLOWANCE" is the percentage of each Reinsurance Premium
which is paid or allowed by the Reinsurer to the Company, as described in
Article VI and set forth in Exhibit A.
"REINSURANCE PREMIUM" means the reinsurance premiums due from the
Company to the Reinsurer, as described in Article V, for each life reinsured
under this Agreement.
"REINSURANCE PREMIUM RATES" means the monthly term reinsurance premiums
rates, used to calculate the Reinsurance Premiums due from the Company to the
Reinsurer for each reinsured life, equal to 1/12th of the applicable annual rate
as set forth in Schedule I.
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"REINSURED PLAN" means any life insurance policy form or rider form
reinsured under this Agreement, as set forth in Exhibit A.
"SETTLEMENT PERIOD" means the period as described in Paragraph 1 of
Article IX.
"SPECIFIED AMOUNT" means the Specified Amount as set forth in the
Policy Schedule of a reinsured policy.
ARTICLE III. COMMENCEMENT AND TERMINATION OF LIABILITY
1. Closed Block; Commencement of Liability. For each policy within Block
1, the liability of the Reinsurer for reinsurance under this Agreement
shall begin on the Effective Date as set forth in Exhibit A, and no
reinsurance is provided under this Agreement for a death occurring
prior to the Effective Date applicable to that policy. For each policy
within Block 1, the liability of the Company for Reinsurance Premiums,
less applicable Reinsurance Allowances, shall begin on the Effective
Date as set forth in Exhibit A.
2. Open Blocks; Commencement of Liability. For a policy or rider reinsured
under Block 2 or 3: (i) the liability of the Reinsurer under this
Agreement for reinsurance shall commence simultaneously with the
beginning of the Company's liability under each corresponding Reinsured
Plan or any application or conditional receipt therefor; and (ii) the
liability of the Company for Reinsurance Premiums under this Agreement
shall begin as of the Policy Date of the reinsured policy or as of the
effective date of reinsured rider, if different. The Company represents
that its normal underwriting practice is to promptly return any premium
payment taken with an application which the Company has declined
without a counteroffer; however, failure of the Company to do so shall
not relieve the Reinsurer for its liability under this Paragraph.
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3 Termination of Reinsurer's Liability. In no event shall the Reinsurer's
liability for reinsurance continue after termination of the Company's
liability for any claims relating to its corresponding reinsured policy
or rider.
ARTICLE IV. THE AMOUNT REINSURED AND THE COMPANY AMOUNT AT RISK
1. The Amount Reinsured.
a) The Amount Reinsured for Plans Without Outside Reinsurance.
For each Reinsured Plan without any Outside Reinsurance, the
initial Amount Reinsured per life under this Agreement shall
be equal to 50% of the first $60,000 of Specified Amount for a
base policy or 50% of the first $60,000 of the Face Amount of
any Other Insured Rider, subject to a maximum Amount Reinsured
of $30,000 per life. In the event that the Specified Amount
for any base policy without Outside Reinsurance is less than
$60,000 and the policy has a reinsured rider on the same
primary insured person, then 50% of the Specified Amount of
the base policy plus up to 50% of the Face Amount of the
reinsured rider shall be reinsured subject to the total Amount
Reinsured not exceeding $30,000 for the life reinsured.
b) The Amount Reinsured for Plans With Outside Reinsurance. For
each Reinsured Plan having Outside Reinsurance the Amount
Reinsured per life under this Agreement shall be equal to 50%
of the first $60,000 of the Company Amount at Risk under the
Reinsured Plans on that person's life. The maximum limit per
life to be reinsured under this Agreement shall be $30,000.
For example, the Amount of Reinsurance on a reinsured life
which has Outside Reinsurance is $30,000 if the Company Amount
at Risk on that life equals or exceeds $60,000.
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c) The Amount Reinsured to Remain Level; Exceptions. Except as
provided in Paragraph 1.d) of this Article, the Amount of
Reinsurance once ceded on a Reinsured Plan on a life will
remain level until such time that the Company Amount at Risk
is less than the Amount Reinsured; in that case the Amount
Reinsured will be equal to the Company Amount at Risk.
d) The Amount Reinsured Affected by Policy Changes. A policy
change which affects the Company Amount at Risk, such as a
change in Death Benefit Option, a change in the policy's
Specified Amount, a change in the Face Amount of a rider, or
an addition or deletion of a rider, will result in a new
calculation of the Amount Reinsured, in the manner described
in the first two sentences of Paragraph 1.a) of this Article
if there is no Outside Reinsurance on the life reinsured. For
lives with Outside Reinsurance the recalculated Amount
Reinsured will be calculated in the manner described in the
first two sentences of Paragraph 1.b) of this Article. The new
Amount Reinsured, following any change, shall be applied under
this Agreement prospectively from the effective date of the
policy change.
e) The Amount for which Reinsurer is Liable under Conditional
Receipts or Applications. With regard to liability of the
Company under the terms of an application for a policy or
rider to be reinsured under this Agreement or under the terms
of a conditional receipt issued in connection with such
application, the liability of the Reinsurer under this
Agreement shall be equal to 50% of the first $60,000 per life
of the Company's liability, plus any amounts for which the
Reinsurer is responsible under Article XVI.
f) Reinsurance Terminates if Amount Reinsured Falls Below Minimum
Cession Amount. If for any reason the
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Amount Reinsured on a life reinsured under this Agreement
falls below the Minimum Cession Amount described in Paragraph
5 c) of Article I, then the reinsurance on that life shall
terminate under this Agreement and shall be automatically and
permanently recaptured by the Company.
2. The Company Amount at Risk. The Company Amount at Risk per life under
each Reinsured Plan shall be calculated each period as follows:
a) Under a newly issued policy. For a newly issued policy, prior
to the third month of the calendar quarter in which the
reinsured policy's Record Date falls, the Company Amount at
Risk is equal to the following sum:
(i) the specified amount of the policy (including the
Face Amount of any reinsured rider on the same life,
if applicable); minus
(ii) any amount ceded by the Company on the life of the
insured person under any Outside Reinsurance; plus
(iii) any amounts retained by the Company under prior
policies or riders reinsured under this Agreement on
the same life.
For the newly issued policy, in the third month of the
calendar quarter in which its Record Date falls, and
thereafter, the Company Amount at Risk shall be calculated as
set forth in Paragraph 2.b) of this Article.
For example: for a policy issued on a Record Date of January
15th with a Policy Date of December 10th, the Company Amount
at Risk under that policy in December, January and February
will be calculated
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under Paragraph 2.a) of this Article; in March, which is the
third month of the calendar quarter in which that policy's
Record Date falls, the Company Amount at Risk would be
calculated under Paragraph 2 b) of this Article.
b) Under an in-force policy. Except as provided in 2 a) of this
Article, in each calendar month, the Company Amount at Risk
per life is equal to the following sum:
(i) the death benefit, as defined in the reinsured policy
(including the Face Amount of any reinsured rider, if
applicable); minus
(ii) any amount ceded by the Company on the life of the
insured person under any Outside Reinsurance; plus
(iii) any amounts retained by the Company under prior
policies or riders reinsured under this Agreement on
the same life; minus
(iv) the cash value of the reinsured policy.
If the Company Amount at Risk under a reinsured policy is
being calculated for the third month of a calendar quarter
(e.g., March, June, September or December), then the cash
value of the policy for that month, for purposes of Paragraph
2.b) (iv), is equal to the cash value of the reinsured policy
as of the end of that month. Except as provided in Paragraph
2.c) of this Article, if the Company Amount at Risk under a
reinsured policy is being calculated for any other month, the
cash value of the policy, for purposes of Paragraph 2.b) (iv),
is measured by and equal to the cash value of the reinsured
policy as of the end of the preceding calendar quarter. Thus,
for example, for purposes of Paragraph 2.b) (iv), the
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cash value of a policy for January or February would be equal
to the policy's cash value for the preceding December.
c) Policy Changes affecting Company Amount at Risk. For purposes
of Paragraph 2.b) of this Article, changes in a policy's
Company Amount at Risk which are due to normal cash value
fluctuation shall be calculated and reported quarterly, as
described in the last three sentences of Paragraph 2.b). Other
changes in the Company Amount at Risk of a policy or rider due
to a policy change shall be recalculated and reported under
this Agreement in or for the month in which the policy change
occurs. For this purpose, such policy changes may include, for
example, a change in Death Benefit Option, a change in the
policy's Specified Amount, a change in the Face Amount of a
rider, and an addition or deletion of a rider.
ARTICLE V. REINSURANCE PREMIUMS
1. Reinsurance Premium Rates. The monthly Reinsurance Premiums due from
the Company to the Reinsurer shall be calculated at the end of each
calendar month based on the Amount Reinsured under each Reinsured Plan
as of its Monthiversary falling in that calendar month. The Company
shall pay to the Reinsurer the Reinsurance Premiums on a monthly
renewable term basis at one twelfth of the applicable annual
Reinsurance Premium Rates set forth in Schedule I. The Reinsurance
Premium Rates are guaranteed by the Reinsurer except where a particular
rate is less than the applicable rate set forth in the Table of
Guaranteed Maximum Life Insurance Rates of the reinsured policies; in
that case, to the extent of such shortfall, such particular rate shall
only be guaranteed for one Policy Year, so that the Reinsurer need not
maintain deficiency reserves in connection with such Reinsurance
Premiums payable pursuant to this Agreement. Nevertheless, Reinsurer
shall anticipate continuing to
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accept reinsurance on the basis of the Reinsurance Premium Rates for
all Reinsured Plans that were originally ceded pursuant to such rates.
2. Table Ratings. The Reinsurance Premium Rates in Schedule 1, when
applied to any Reinsured Plan which is issued by the Company with a
table rating, shall be multiplied by the appropriate table percentage
which is in effect for that policy or rider. The Company's current
table percentages are as set forth in Schedule I.
3. Risks Bearing Permanent Flat Extras (More Than Five Years). The total
reinsurance premium for risks bearing flat extra ratings of more than
five (5) years shall be at the Reinsurance Premium Rates provided in
Schedule I plus the following percentage of the flat extra mortality
charge under the Reinsured Plan for the Amount Reinsured.
First Year 25%
Renewal Years 90%
4. Risks Bearing Temporary Flat Extras (Five Years or Less). The total
reinsurance premium for risks bearing flat extra ratings of five (5)
years or less shall be at the Reinsurance Premium Rates provided in
Schedule I plus 90% of the temporary flat extra mortality charge under
the Reinsured Plan for the Amount Reinsured.
ARTICLE VI. REINSURANCE ALLOWANCES
1. Reinsurance Allowance. On each Reinsurance Premium due Reinsurer, the
Reinsurer shall pay or allow to the Company a Reinsurance Allowance
equal to a percentage of the Reinsurance Premium, as shown in Exhibit A.
The Reinsurer shall not be obligated to pay or reimburse the Company for
expenses incurred by the Company associated medical examinations,
inspection reports or other expenses associated with the issuance,
acquisition or administration a policy or rider.
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2. Flat Extras. However, in the case of risks bearing permanent or
temporary flat extras, as described in Paragraphs 3 and 4 of Article
V, Reinsurance Allowances are payable on the Reinsurance Premium Rates
provided in Schedule I but are not payable on the additional flat extra
mortality charge.
ARTICLE VII. INITIAL CEDING ALLOWANCE FOR EACH BLOCK
No Initial Ceding Allowance:
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There shall be no Initial Ceding Allowance on any Block.
ARTICLE VIII. REIMBURSEMENT FOR TAXES
Reimbursement by Reinsurer. The Reinsurer shall reimburse the Company for any
U.S. Excise Tax the Company is required to pay under the U.S. Internal Revenue
Code for the reason that the Reinsurer fails to make an election or terminates
its election to file U.S. federal income tax returns or otherwise ceases or
fails to file such return. The Reinsurer shall not reimburse the Company for any
other federal or state taxes or state guaranty fund assessments the Company may
be required to pay with respect to the Reinsured Plans. This Paragraph does not
diminish in any way the provisions of Article XVIII.
ARTICLE IX. INITIAL SETTLEMENT AND SUBSEQUENT ACCOUNTING
1. Initial Settlement of the Closed Block. There shall be an initial
settlement for the Closed Block on or as of its Initial Settlement
Date. In the initial settlement, the Reinsurer shall pay the aggregate
Initial Ceding Allowance for each applicable Block and the parties
shall settle all other items due to or from each other, with respect to
the Block, for the period from the first Effective Date of that Block
through the calendar month-end on or prior to Initial Settlement Date
(Settlement Period) in the following manner. The Reinsurer shall pay to
the Company
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on the Initial Settlement Date (or within five (5) days after the
Execution Date, if later) an amount equal to:
a) the Initial Ceding Allowance due to Company for the Closed
Block; less
b) the Reinsurance Premiums, net of applicable Reinsurance
Allowances, due to the Reinsurer for the Settlement Period;
plus
c) any reinsurance death claims due and payable to Company under
this Agreement for deaths occurring during the Settlement
Period; plus
d) the amount of Funds Held, if any, to be held by the Company
pursuant to Article XII.
2. Monthly Accounting. Except as provided under Initial Settlement of the
Closed Block pursuant to Paragraph 1 of this Article, on an ongoing
basis Reinsurance Premiums and adjustments and other items due to or
from each party shall be accounted for and settled monthly. In each
calendar month, the Company shall send to Reinsurer a Monthly Summary
Report showing totals of Reinsurance Premiums for all outstanding new
reinsurance which have been ceded and renewal Reinsurance Premiums for
all renewal reinsurance falling due within the previous month, as
further described in Article X. The statement shall also include
Reinsurance Allowances and any adjustments in Reinsurance Premiums due
in previous months, any reinsurance death claims due, and adjustments
for any Funds Held pursuant to Article XII (including interest due
Reinsurer thereon). The Company shall remit to the Reinsurer the
amount of any net balance due. If the net balance is in favor of the
Company the Reinsurer shall remit to the Company.
3. Reinsurance Premiums Past Due. The payment of Reinsurance Premiums by
the Company is a condition of the liability of
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the Reinsurer under reinsurance covered by this Agreement. In the event
of non-payment of Reinsurance Premiums as provided in this Agreement,
the Reinsurer shall have the right to terminate the reinsurance under
all policies or riders having Reinsurance Premiums in arrears.
Reinsurance Premiums shall be considered in arrears if not paid within
the later of: (i) 30 days after the end of the month for which they are
due; or (ii) 10 days after the Monthly Accounting is sent by the
Company to the Reinsurer. For this purpose, where the actual amount of
Reinsurance Premiums cannot be reasonably determined because of
administrative or other reasons, Reinsurance Premiums shall not be
considered in arrears if the Company has made timely payment of a good
faith estimate of the amount of Reinsurance Premium due. In order for
Reinsurer to exercise its right to so terminate such reinsurance
because of Reinsurance Premiums being in arrears, the Reinsurer shall
first give the Company written notice thereof, and the Company shall
have the right to cure such non-payment within ten (10) days from its
receipt of the written notice. If the Company fails to cure such
non-payment within the ten day period, then the reinsurance under all
policies or riders having Reinsurance Premiums still in arrears shall
terminate and the Reinsurer shall have no liability thereafter with
respect to such policies and riders.
4. Currency. All amounts due either party under this Agreement shall be
payable in United States currency.
ARTICLE X. REPORTING
1. Reporting by the Company. The Company shall send to the Reinsurer the
following reports within the time periods as shown in each subparagraph
below. The Company shall make its best effort to send the reports
described in Paragraphs (a), (b) and (c) within twenty (20) days after
the end of each respective reporting period whenever administratively
practicable.
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a) Monthly Bordereau Report: within 30 days after the end of each
month, a monthly in-force inventory of the amount of the
reinsurance in force, new reinsurance and reinsurance changing
or terminating (including reported death claims). The
information in the report will consist of sufficient detail
for each policy and rider to permit the Reinsurer to perform
its administrative functions and will be provided in an
electronic medium acceptable to both parties.
b) Monthly Summary Reports: within 30 days after the end of each
month, a copy of a Monthly Summary Report containing monthly
totals of: first year and renewal Reinsurance Premiums
payable; Reinsurance Allowances due the Company; death claims
incurred; any other claim-related amounts due Company under
Article XVI; any change in Funds Held which is due to or from
the Company (including interest due the Reinsurer on Funds
Held); and the net amount due to or from Reinsurer.
c) Monthly Exhibit of Reinsurance in Force: within 30 days after
the end of each month, a copy of an exhibit summarizing:
additions for the month, including counts and amount of new
issues, reinstatements and increases in ceded amount;
decreases for the month, including counts and amounts of
lapses, surrenders, death claims, maturities, and decreases in
ceded amount; and the total reinsurance in force as of the end
of the month.
d) Quarterly Financial Reports: within 30 days after the end of
each calendar quarter, a report for Reinsurer's financial
reporting purposes, containing additional quarterly and
year-to-date financial information, with respect to the
reinsurance, to permit the Reinsurer to complete its statutory
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financial statements and other financial reporting
obligations. The information will be provided in an electronic
medium acceptable to both parties.
e) Annual Statutory Financial Statements: within 90 days after
the end of each calendar year, a copy of the statutory
financial statements of the Company as filed with the State of
Ohio.
2. Reporting by the Reinsurer. The Reinsurer shall send to the Company
within ninety (90) days after the end of each respective reporting
period, financial statements of the Reinsurer as of the end of each
calendar quarter and calendar year, including balance sheet and income
statement. The quarterly financial statements shall have been prepared
in accordance with or based on U.S. generally accepted accounting
practices applied on a consistent basis in the reasonable opinion of
the Reinsurer. The annual financial statements of the Reinsurer shall
have been prepared in accordance with or based on U.S. generally
accepted accounting practices applied on a consistent basis and shall
have been audited by an independent public accounting firm.
ARTICLE XI. REDUCTIONS
1. Reductions. If any of the original policies or riders reinsured under
this Agreement are reduced or terminated, the Amount Reinsured under
this Agreement on such a policy or rider will be recalculated in
accordance with Paragraph 1.d) of Article IV.
ARTICLE XII. FUNDS HELD, LETTER OF CREDIT.
1. Security Requirement. In the event Reinsurer is not licensed or
otherwise accredited or authorized as a reinsurer in the Company's
domiciliary state and in any other jurisdiction where the Company is
licensed to do
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business, the Reinsurer shall, at all times while the reinsurance under
this Agreement is in effect, provide security, as described in this
Article, for its obligations under this Agreement or as otherwise
agreed to in writing by the parties. The type, standards, form,
provisions, conditions, terms, dates and financial institutions
relating to such security, and the conditions upon which Reinsurer
shall provide such security, shall at all times comply with the
insurance laws and regulations of the Company's domiciliary state, as
may be amended or superceded from time to time, relating to security
given in connection with allowing the Company, for statutory insurance
accounting purposes, to recognize admitted assets or reserve credits or
other credits associated with such reinsurance ceded to an unauthorized
or unaccredited reinsurer.
2. Initial Security; Funds Held. Until such time as the Reinsurer
provides a Letter of Credit as described in Paragraph 3 of this
Article, on the Initial Settlement Date of each of the Closed Blocks
described in Paragraph 1 of Article IX and with each monthly accounting
described in Paragraph 2 of Article IX, the Company shall withhold or
receive funds from the Reinsurer ("Funds Held") equal to a certain
amount as follows. On the Initial Settlement Date, the Company shall
withhold the required amount of Funds Held from the net amount, if any,
otherwise due from the Company to the Reinsurer on that date; to the
extent any net amount otherwise due Reinsurer on that date is
insufficient to cover the required amount of Funds Held, the Reinsurer
shall pay the Company in cash the balance of the required amount of
Funds Held on that date. Likewise, in connection with each monthly
accounting under Paragraph 2 of Article IX, the Company shall adjust
the total required amount of Funds Held; if the required amount of
Funds Held increases, the Company shall withhold or receive cash from
the Reinsurer equal to the increase in the required amount of Funds
Held, and, if the required amount of Funds Held decreases, the
Reinsurer shall
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withhold or receive cash from the Company equal to the decrease in the
required amount of Funds Held. The required amount of Funds Held for
the period shall be equal to the reinsurance credits taken or
reasonably estimated to be taken by the Company in connection with this
Agreement under Exhibit 8 and under column 3, line 4.c. of Part 1 of
Exhibit 11 of the Company's statutory financial statements. The Company
shall adjust the required amount of Funds Held on a monthly basis. The
Company shall retain the gross investment income derived from the Funds
Held but shall pay the Reinsurer interest thereon each month at a rate
equal to the interest rate for (ninety) 90 day Commercial Paper as
published the first business day of that month in the Wall Street
Journal or successor publication agreed upon by the parties. The
Company shall hold the Funds Held in the United States as part of its
general account assets; and the Company shall have exclusive control
over the Funds Held and sole right to withdraw or disburse such funds.
3. Letter of Credit. Instead of providing Funds Held as described in
Paragraph 2 of this Article, the Reinsurer at its expense may provide
and maintain a Letter of Credit in favor of the Company in an amount
which at all times equals or exceeds the required amount of Funds Held
determined as described in Paragraph 2 of this Article. The form,
provisions, conditions, terms and dates, as well as the issuing
financial institution, of or relating to the Letter of Credit, and the
conditions upon which Reinsurer shall provide such Letter of Credit,
shall comply with the insurance laws and regulations of the Company's
domiciliary state, as may be amended or superceded from time to time,
relating to such Letters of Credit. The issuing institution shall be an
U.S. bank or trust company or a U.S. branch of a foreign bank appearing
on the list of approved letter of credit banks published from time to
time by the Securities Valuation Office of the National Association of
Insurance Commissioners. The Letter of Credit shall be substantially in
the form set
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forth in Exhibit B or in such other form as the Ohio Insurance
Department or other applicable State Insurance Department may require
or permit. The terms of the Letter of Credit shall provide that: it is
not conditioned on the delivery of any other documents or materials; it
is irrevocable without the consent of the Company; it is automatically
renewable as provided in Exhibit B; and its initial term is for a
period of not less than one year. Such Letter of Credit may be drawn
upon at any time, notwithstanding any other provisions in this
Agreement, but shall be utilized by the Company or its successors only
for one or more of the following reasons:
(i) to fund an account with the Company in an amount at least
equal to the deduction, for reinsurance ceded, from the
Company's liabilities for Reinsured Plans (such amount shall
include, but not be limited to, amounts for policy reserves,
claims and losses incurred and unearned premium reserves); and
(ii) to pay any other amounts the Company claims are due under this
Agreement.
Such Letter of Credit shall be promptly issued and delivered to the
Company. But in no event shall the Letter of Credit be issued or
confirmed later than December 31 in respect of the year for which the
Company is taking credits for such reinsurance in its statutory
financial statements, and in no event shall the Letter of Credit be
delivered to the Company later than thirty days after such December 31.
ARTICLE XIII. REDUCTION OF REINSURANCE BY COMPANY (RECAPTURE)
1. Recapture. Except as provided in Paragraphs 2 and 3 of this Article,
the Company may not reduce (recapture) the reinsurance in-force on any
lives on which reinsurance has been ceded under this Agreement
(in-force reinsurance).
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2. Events triggering right to recapture. The Company shall have the right
to recapture a portion or all of the in-force reinsurance on some or
all lives
(i) on thirty days written notice or later date specified in the
notice if:
a) the Reinsurer fails to cure a material default under
a loan or note from the Company or its affiliates; or
b) the Reinsurer increases the Reinsurance Premium Rates
under this Agreement on in-force business without the
Company's written agreement; and
(ii) immediately upon written notice, unless a later date is
specified in the notice, if:
c) the Company elects to recapture due to the insolvency
of the Reinsurer as provided in Paragraph 2 of
Article XX;
d) the Reinsurer dissolves, ceases to legally exist, or
otherwise ceases to be legally authorized to act as a
reinsurer in its domiciliary jurisdiction; or
e) the Reinsurer fails, within thirty (30) days after
written notice by Company of a material breach of
this Agreement by Reinsurer, to cure such material
breach; for this purpose, a material breach may
include but is not limited to: failure to pay any
agreed Reinsurance Allowances, failure to pay
reinsurance claims, or failure to comply with Article
XII;
(iii) when agreed if:
f) by the mutual written agreement of the parties.
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3 Notice and Date of Recapture. The written notice of the Company's
exercise of right to recapture shall specify the applicable reason set
forth in Paragraph 2 which is triggering the recapture and the extent
of the recapture.
4. Effect of Recapture on Reinsurance. Recapture by the Company under this
Article shall be prospective from the effective date of recapture and
shall not diminish the amounts due under this Agreement (or other
rights or obligations of the parties under this Agreement) outstanding
prior to the effective date of recapture.
ARTICLE XIV. REINSTATEMENTS
1. Automatic Reinsurance of Reinstated Policies. Should a reinsured
policy (including any reinsured rider, if applicable) lapse and
subsequently be reinstated in accordance with its terms and the normal
rules of the Company, the reinsurance for such policy shall be
reinstated automatically. The Company shall pay Reinsurance Premium to
the Reinsurer for the same period of time cost of insurance charges are
received by the Company on such a reinstated policy.
ARTICLE XV. POLICY CHANGES
Duty to inform Reinsurer of Policy Changes. Should the Company make any material
changes (including but not limited to a change in Face Amount, Specified Amount,
Company Amount at Risk, or Rating Classification) in the provisions and
conditions of a policy issued to an insured and upon which reinsurance shall
have been granted hereunder, the Company shall reflect such policy changes, as
appropriate, in the monthly reports called for in Paragraph 1 of Article X.
ARTICLE XVI. SETTLEMENT OF CLAIMS
1. Notice. On a monthly basis, the Company shall account to the Reinsurer
for death claims due as provided in
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Paragraph 2 of Article IX and shall notify Reinsurer of reported death
claims as provided in Paragraph 1a) of Article X. Company agrees to
furnish Reinsurer with copies of the proof of loss or other written
materials relating to a specific claim upon request of Reinsurer or as
provided in Paragraph 5 of this Article.
2. Standard Claim Practices. Company agrees to act in accord with its
standard practices applicable to all claims in enforcing the terms and
conditions of the reinsured policies or reinsured riders and with
respect to the administration, negotiation, payment, denial, or
settlement of any claim or legal proceeding.
3. Payment and Settlement of Claim. Reinsurer agrees to accept the good
faith decision of the Company in payment or settlement of any claim for
which Reinsurer has received the required notice. Reinsurer agrees to
pay Company the Amount Reinsured on which Reinsurance Premiums have
been computed upon receiving proper evidence the Company has paid a
policy claim. Payment of the Amount Reinsured on account of death shall
be made in one lump sum. Reinsurer shall also refund to the Company,
without interest, any Reinsurance Premiums, net of any Reinsurance
Allowance, which had been paid to Reinsurer for policy months which
began after the date of death.
4. Reinsurer's Liability for Covered Claim Expenses. Except as provided
in Paragraph 5 of this Article, Reinsurer's liability shall include
indemnification of the Claims Ratio of any covered claim expenses
incurred by Company in defending or investigating a policy claim.
Covered claim expenses shall include, but not be limited to, cost of
investigation, legal fees, court costs and interest charges. Covered
claim expenses shall not include:
a) Compensation of salaried officers and employees;
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b) routine investigative expenses of incontestable claims:
c) expenses incurred by the Company in connection with an
interpleader proceeding or other dispute or contest arising
out of conflicting claims of entitlement to proceeds or
benefits under a Reinsured Plan; and
d) any possible extra-contractual damages shall not be considered
covered claim expenses.
5. Contested, Litigated or Compromised Claims. The Company shall promptly
notify Reinsurer of its intention to contest, compromise or litigate
any claim on a Reinsured Plan or its intention to investigate or defend
any litigation initiated against the Company in response to the
Company's denial of a claim on a Reinsured Plan. With or immediately
following such notice, the Company shall furnish Reinsurer with copies
of written materials relating to such claim. Reinsurer shall promptly
notify Company of its decision whether or not to accept any such
action. If Reinsurer declines to accept any such action, it will pay
the full Amount Reinsured, as if there had been no such contest,
compromise or litigation, and will be fully discharged as of the date
of such payment from any further liability on that claim under
Paragraph 4 of this Article. If the Reinsurer accepts such action,
then: (i) Reinsurer shall continue to share in the covered claim
expenses as described in Paragraph 4; (ii) the Company shall keep the
Reinsurer informed of the status of any legal proceeding or settlement
negotiations in connection with such claim; and (iii) if the contest or
compromise reduces the amount of the Company's liability, the
Reinsurer's liability shall be reduced to its Claims Ratio of the
reduced amount.
6. Recovery from Third Party. The Company shall promptly notify Reinsurer
if the Company should assert or bring a
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claim or action against a third party for contribution, indemnification
or similar grounds to recover from the third party any monies paid or
expenses incurred by the Company in connection with a policy claim
reinsured under this Agreement. Upon request, the Company shall furnish
Reinsurer with copies of written materials relating to such third party
claim or action. Reinsurer shall promptly notify Company of its
decision whether or not to share in the expenses and potential recovery
of any such proceeding. If Reinsurer declines to so accept any such
proceeding, Reinsurer shall not participate in any costs of such
proceeding and shall not share in any monies so recovered by the
Company. If the Reinsurer accepts such action, then: (i) Reinsurer
shall continue to share in the expenses of that proceeding as described
in Paragraph 4 as though they were covered claim expenses; and (ii) the
Company shall keep the Reinsurer informed of the status of such
proceeding or settlement negotiations in connection with such
proceeding. In that event, the parties agree that any monies so
recovered by the Company: (i) shall be applied first to reduce the
costs incurred by the Company in prosecuting such third party claim or
action and to that extent shall be shared with the Reinsurer in
accordance with its Claims Ratio; (ii) shall then be applied to any
punitive, exemplary, compensatory or other extra-contractual or
non-contractual damages or settlement paid or ordered or agreed to be
paid by the Company in excess of the limits of the policy, and shall
not be shared with the Reinsurer; (iii) shall then be applied to reduce
the covered claim expenses of the original claim and to that extent
shall be shared with the Reinsurer in accordance with its Claims Ratio;
and (iv) to the extent there is any remaining recovery, shall then be
applied to reduce the Company's liability under the policy and shall be
shared with Reinsurer in accordance with the Reinsurer's Claims Ratio.
For purposes of the preceding sentence, the numerator of the Claims
Ratio shall be recalculated by deducting Reinsurer's share of any
recovery under (iv) of the preceding sentence, and the
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denominator of the Claims Ratio shall be recalculated by deducting the
total amount of any recovery under (iv) of the preceding sentence. The
parties understand and agree that this Paragraph shall not apply to and
the Reinsurer shall not share in: (i) commission chargebacks or
adjustments made by the Company in accordance with its contract with
the Producer or an agent; (ii) any first-party claim brought by the
Company under any liability, fidelity or indemnity coverages carried by
the Company or its affiliates; and (iii) any reinsurance claims paid to
the Company by an Outside Reinsurer.
7. Adjustments for Misstatements. If the amount claimed as death benefit
under a reinsured policy or reinsured rider is increased or reduced
because of a misstatement of age, sex or smoker status, the Company
Amount at Risk will be calculated based on the adjusted amount of death
benefit and the Amount Reinsured will, if applicable, be increased or
decreased proportionately.
8. Interest. If the Company pays interest on a claim, Reinsurer agrees to
pay the interest on the Amount Reinsured computed at the same rate and
for the same period as that paid by the Company, but in no event later
than the date the claim is finally adjudicated by the Company.
9. Penalties.
a) Statutory Penalties. If the Company is required to pay
penalties or interest imposed automatically by statute, other
than penalties or interest arising from Company's negligent or
intentional violation of such a statute, Reinsurer shall
indemnify the Company for the Claims Ratio of such penalties
and interest.
b) Extra-Contractual Damages. Except as provided in Paragraph 5
of this Article, Reinsurer shall not be liable for any
punitive, exemplary or other extra-
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contractual damages awarded by a court against the Company
with respect to a policy or rider reinsured under this
Agreement, and the Reinsurer's liability therefor under this
Agreement shall be limited to the Reinsured Amount plus its
Claims Ratio of covered claims expenses and of statutory
penalties.
10. Accelerated Death Benefits. The Reinsurer shall participate in any
claim for any Accelerated Death Benefit in connection with the
Reinsured Plans. A claim for accelerated death benefits shall be
treated under this Agreement as though it were a death claim and as
though the death occurred on the date the claim was made. If the
claimant elects to take less than 100% of the benefit under the
Accelerated Death Benefit and the reinsured policy thereby remains in
force, then: the Reinsurer shall pay the Company for the Accelerated
Death Benefit an amount equal to the accelerated percentage elected by
the claimant multiplied by the present value, calculated in accordance
with the rider form, of the Amount Reinsured; and the reduced Amount
Reinsured for the policy shall be equal to the original Amount
Reinsured reduced by the same percentage used to calculate the
Accelerated Death Benefit paid.
ARTICLE XVII. RECORDS
Each party, its auditors and any regulators having authority over that party
shall have the right, at all reasonable times, and at their expense, to inspect
at the office of the other party all books, records, procedures and documents of
the other party relating to this reinsurance. A party or its auditor conducting
such inspection shall give the other party one week advance notice. The Company,
its auditors and regulators shall have the same right to inspect, verify and
value any assets held in a trust account or otherwise held for the benefit of
the Company under Article XII. The party being audited or inspected agrees to
cooperate in the audit, including providing any information requested by the
other party or its auditor in
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advance of the audit or inspection. Upon request, the Company agrees to furnish
the Reinsurer with copies of any underwriting information in the Company's files
pertaining to a reinsured policy or reinsured rider.
ARTICLE XVIII. DAC TAX (Section 1.848-2(g)(8) Election)
1. Rights and Duties of Each Party. The Company and the Reinsurer hereby
agree to the following, pursuant to Section 1.848-2(g)(8) of the Income
Tax Regulations issued December 1992, under Section 848 of the Internal
Revenue Code of 1986, as amended. This election shall be effective for
all years for which this Agreement remains in effect.
a) The terms used in this Article are defined by reference to
Regulation Section 1.848-2 in effect December 1992.
b) 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).
c) 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.
d) The Company will submit a schedule to the Reinsurer by May 1
of each year of 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
Company stating that the Company will report such net
consideration in its tax return for the preceding calendar
year.
e) The Reinsurer may contest such calculation by providing an
alternative calculation to the Company in writing within 30
days of the Reinsurer's receipt of the Company's calculation.
If the Reinsurer does not so notify the Company, the Reinsurer
will report
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the net consideration as determined by the Company in the
Reinsurer's tax return for the previous calendar year.
f) If the Reinsurer contests the Company's calculation of the net
consideration, the parties will act in good faith to reach an
agreement as to the correct amount within thirty (30) days of
the date the Reinsurer submits its alternative calculation.
If the Company and the Reinsurer reach agreement on an amount
of net consideration, each party shall report such amount in
their respective tax returns for the previous calendar year.
ARTICLE XIX. OVERSIGHTS - CLERICAL ERRORS
Effect. Should the Company fail to cede reinsurance that otherwise would have
been ceded in accordance with the provisions of this Agreement, or should either
party fail to comply with any of the other terms of this Agreement, and if this
is shown to be unintentional or the result of a misunderstanding, oversight, or
clerical error on the part of either party, then this Agreement shall not be
deemed abrogated thereby, but the parties shall be restored to the position they
would have occupied had no such oversight or misunderstanding or clerical error
occurred.
ARTICLE XX. INSOLVENCY
1. Insolvency of the Company.
a) Written Notice of Insolvency. The Company shall immediately
give Reinsurer written notice of an event constituting
Insolvency of the Company. However, whether such notice is
timely given or not, in the event of the Insolvency of the
Company, all amounts relating to reinsurance made, ceded,
renewed or otherwise becoming effective under this Agreement
shall be payable by the Reinsurer directly to the Company or
to its liquidator, receiver or statutory
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successor on the basis of the liability of the Company under
the Reinsured Plan without diminution because of the
insolvency of the Company or because the Company or Company's
legal representative has failed to pay all or a portion of
amounts owed to Reinsurer under this Agreement. It is
understood, however, that in the event of the Insolvency of
the Company, the liquidator or receiver or statutory successor
of the insolvent Company shall give written notice to the
Reinsurer of the pendency of a claim against the insolvent
Company on the policy reinsured within a reasonable time after
such claim is filed in the Insolvency proceeding and that
during the pendency of such claim that the Reinsurer may
investigate such claim and interpose in the name of the
Company (or its liquidator, receiver or statutory successor),
at the Reinsurer's own expense, in the proceeding where such
claims is to be adjudicated any defense or defenses which it
may deem available to the Company or its liquidator or
receiver or statutory successor.
b) Expenses Incurred. It is further understood that the expenses
thus incurred by the Reinsurer shall be chargeable, subject to
court approval, against the insolvent Company as part of the
expense of liquidation to the extent of a proportionate share
of the benefit which may accrue to the Company solely as a
result of the defense undertaken by the Reinsurer. When two or
more reinsurers are participating in the same claim and a
majority in interest elect to interpose a defense or defenses
to such claim, the expense shall be apportioned in accordance
with the terms of this Agreement as though such expense had
been incurred by the Company.
2. Insolvency of the Reinsurer. The Reinsurer shall immediately give
Company written notice of an event constituting Insolvency of the
Reinsurer. Upon the
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Insolvency of the Reinsurer, whether notice thereof was given by the
Reinsurer or not, the Company has the right to immediately, by written
notice, terminate this Agreement and recapture all reinsurance under
this Agreement. Notwithstanding such termination or recapture,
Reinsurer or its legal representative shall continue to be liable to
the Company for any obligations of the Reinsurer under this Agreement
still outstanding after giving effect to such recapture.
ARTICLE XXI. ARBITRATION
1. Conditions. Any controversy or claim between the Company and the
Reinsurer, arising out of or relating to this Agreement or the breach
thereof or the coverage of this arbitration provision, shall be settled
by arbitration.
2. Appointment of Arbitrators. There shall be three arbitrators who shall
be current or former officers of life insurance companies or life
reinsurers. However, unless otherwise consented to in writing by the
parties, such person shall not be a current or former employee of, or
current or former consultant to, the parties or any affiliate or
reinsurer of the parties; nor shall he or she have any current
employment or affiliation with, consulting or contractual engagement
with, or financial interest in: a party to this Agreement or persons or
companies affiliated or associated with a party to this Agreement,
including, with respect to the Reinsurer, the Producer or any persons
or companies associated with the Producer. The Company shall appoint
one of the arbitrators and the Reinsurer shall appoint a second
arbitrator and these two arbitrators shall select the third. If either
party shall fail to appoint an arbitrator within thirty days after the
other party has given notice of its appointment of an arbitrator, the
appointment of the arbitrator for the party which has so failed to
appoint an arbitrator shall be left to the other party. Should the two
arbitrators appointed by or for the
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parties fail to agree on the choice of the third, within sixty (60)
days of their appointment then each of them shall name three (3)
individuals, of whom the other shall decline two (2), and the decision
shall be made by drawing lots.
3. Commercial Arbitration Rules. Arbitration shall be conducted in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association which shall be in effect on the date of
delivery of demand for arbitration; except, however, that arbitrators
shall be appointed in accordance with the provisions of Paragraph 2, of
this Article and that, to the extent any other terms or provisions of
this Article are inconsistent with or in conflict with the Commercial
Arbitration Rules, this Article shall control.
4. Place. The arbitration shall be conducted in a location to be
determined by a majority of the Arbitrators.
5. Expenses. Each company shall pay that part of the expense of
arbitration which shall be apportioned to it by the arbitrators.
6. Award. The award rendered by the arbitrators shall be final, and
judgment may be entered upon it in any court having jurisdiction
thereof.
7. Basis for Decision. The arbitrators shall base their decision on the
terms and conditions of this Agreement and, as necessary, on the
customs and practices of the life reinsurance and life insurance
industries rather than on a strict interpretation of applicable law.
ARTICLE XXII. PARTIES TO AGREEMENT
This is an Agreement solely between the Company and the Reinsurer. The
acceptance of reinsurance hereunder shall not create any right or legal relation
whatever between the
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Reinsurer and the original insured, beneficiary or other party to or under any
policies or riders of the Company which may be reinsured hereunder.
ARTICLE XXIII. DURATION OF REINSURANCE AND TERM OF AGREEMENT
1. Duration of Reinsurance. Except as provided in Article XIII and in
Paragraph 2 of Article XX, in-force reinsurance which has been ceded
under this Agreement shall be unlimited as to its duration and shall be
maintained in force for so long as such policies shall remain in force
and the reinsurance premiums are paid when due.
2. Term of Agreement. The initial term of this Agreement shall be five (5)
years. During and after the initial term, this Agreement may be
canceled as it pertains to the reinsurance of new business thereafter:
(i) immediately upon written notice by a party if the other party
becomes insolvent, dissolves, ceases to legally exist, or
otherwise ceases to be legally authorized to act as a
reinsurer or insurer, respectively, in its domiciliary
jurisdiction;
(ii) upon thirty (30) days written notice by a party if the other
party has materially breached this Agreement and has failed to
cure such breach within such 30 days;
(iii) upon thirty (30) days written notice by the Reinsurer, if the
Company has made a material change in its underwriting
practices which the Reinsurer has not consented to in advance
and which has an adverse and material financial impact on the
Reinsurer;
(iv) upon thirty (30) days written notice by the Company, if the
Reinsurer increases the Reinsurance Premium
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Rates under this Agreement on new business without the
Company's written agreement;
(v) upon one (1) year written notice by the Company, if the total
Amount of Reinsurance ceded on base policies sold in any
twelve (12) month period is less than 80% of the Amount of
Reinsurance ceded on base policies sold in the preceding
twelve (12) month period; or
(vi) when and as agreed upon by the parties in writing.
After the initial term of this Agreement, this Agreement may also be
canceled by either party, as it pertains to the reinsurance of new
business thereafter, by giving one (1) year advance notice of
cancellation in writing. In such case, the Company shall continue to
cede, and the Reinsurer shall continue to accept reinsurance, under
this Agreement on policies and riders issued during the one (1) year
period, and the interest of the Reinsurer in new business shall cease
at the end of the one (1) year period.
ARTICLE XXIV. WRITTEN NOTICE
Any notice given in connection with this Agreement shall be deemed to be
provided when it is sent by facsimile to the numbers shown below, or by first
class mail or by courier to the addresses set forth below, or to the last
address or facsimile number of record such party designates in writing:
If to Company: Western Reserve Life Assurance Co.
of Ohio
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇.
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Attn: President
With a copy to: Western Reserve Life Assurance Co.
of Ohio
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇.
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Facsimile:(▇▇▇) ▇▇▇-▇▇▇▇
Attn: General Counsel
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If to Reinsurer: WMA Life Insurance Company Limited
Third ▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇ ▇▇, ▇▇▇▇▇▇▇
Attn: Manager
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq.
▇▇▇▇▇▇▇ & ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to: WMA International
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: Executive Vice President
and Secretary
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
ARTICLE XXV. OFFSET.
Any debts or credits, matured or unmatured, liquidated or unliquidated,
regardless of when they arose or were incurred, in favor of or against either
Company or Reinsurer with respect to this Agreement or any other reinsurance
agreement between the parties, shall be offset and only the balance allowed or
paid. If either Company or Reinsurer is then under formal insolvency
proceedings, this right of offset shall be subject to the laws of the state
exercising primary jurisdiction over such proceedings.
ARTICLE XXVI. ASSIGNMENT OF REINSURANCE
If the Company sells, assumption reinsures or otherwise transfers the Reinsured
Plans to another insurer, the Company agrees to require that the other insurer
assume all rights and obligations of the Company under this Agreement. Reinsurer
may object to any such transfer that would result in a material adverse economic
impact to Reinsurer. If Reinsurer so objects, Company and Reinsurer agree to
mutually calculate a termination
Page 38 of 43
39
charge which shall be paid by Company to Reinsurer upon the transfer and this
Agreement shall be terminated with respect to all Reinsured Plans transferred by
Company.
ARTICLE XXVII. ENTIRE AGREEMENT
This Agreement represents the entire agreement between the parties regarding the
subject matter of this Agreement and supersedes any prior oral or written
agreements between the parties regarding that subject matter. No modification of
this Agreement shall be effective unless set forth in a written amendment
executed by both parties. A waiver of a right created by this Agreement shall
constitute a waiver only with respect to the particular circumstance for which
it is given and not a waiver in any future circumstance.
As of the Execution Date, this Agreement consists of this Agreement and its
Exhibits A and B and its Schedule I.
ARTICLE XXVIII. COMPANY'S PRACTICES, FORMS.
1. Underwriting and Administrative Practices. As a general business
practice, the Company shall follow its current normal underwriting
practices in issuing and administering Reinsured Plans, which have been
disclosed to the Reinsurer prior to the Execution Date.
2. Compliance with Laws and Charter. The Reinsured Plans shall be issued
and delivered by the Company in compliance with the laws of all
applicable jurisdictions and with the Company's Articles of
Incorporation.
3. Forms and Manuals. The Company agrees, to the extent requested in
writing by the Reinsurer, to file with the Reinsurer copies of all
appropriate policy and rider forms, rate manuals, retention schedules,
application forms, conditional receipts, temporary insurance
agreements, binders, underwriting questionnaires, and authorization
forms for release of medical information.
Page 39 of 43
40
4. Notice of Changes. Should the Company make any change in its
underwriting rules, general underwriting practices or claims practices
which materially affects the risk borne by the Company and the
Reinsurer regarding Reinsured Plans, the Company shall promptly provide
written notice to the Reinsurer of such change. Should the Company make
a material change in any form or manual provided to Reinsurer pursuant
to Paragraph 3 above, the Company shall promptly provide Reinsurer with
a copy of the change or of the revised form or manual.
ARTICLE XXIX. HEADINGS.
The headings of the Articles, Paragraphs and any subparagraphs of this Agreement
are inserted for convenience of reference only and shall not constitute a part
of this Agreement.
ARTICLE XXX. EXECUTION OF AGREEMENT
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their duly authorized representatives in Largo FL this
9th day of July, 1996.
WMA LIFE INSURANCE COMPANY LIMITED
By: /s/ S. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Title: President
--------------------------------- ----------------------------
Authorized Officer
Attest:
By: /s/ ▇. ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Title: Vice President
--------------------------------- -----------------------------
Authorized Officer
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇ Title: Executive V.P., Actuary & CFO
--------------------------------- -----------------------------
Authorized Officer
Attest:
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ Title: Vice President
--------------------------------- -----------------------------
Authorized Officer
Page 40 of 43
41
EXHIBIT A
REINSURANCE SCHEDULE
Amount of Reinsurance per life: 50% of the first $60,000, as described in Par
1. of Art. IV
Policies/Plans/Riders to be Reinsured: All of the following policies (including
applicable riders), if sold by and through agents of Producer registered with
WMA Securities, Inc., shall be eligible to be reinsured under this Agreement.
Subject to that condition, and subject to Par. 5 of Art. I, the following forms
(including State variations thereof) having the following Policy Dates shall be
reinsured:
----------------------------------------------------------------------------------------------------------------------------
POLICY NAME OR
REINSURED DESCRIPTION REINSURED WRL PLAN CODE
BLOCKS AND FORM NO. PLANS CO. CODE WRL YRT CODE
----------------------------------------------------------------------------------------------------------------------------
Block 1: Policies WRL Freedom Equity Base Policy Only: (Co. 15)
with Policy Protector variable
Dates 6/30/96 universal life (FEP)*, -Standard FEP -F67001/F67002 -565506/565507
and prior Policy Form No. -▇▇▇▇ FEP -F67501/F67509 -567503/567502
VLB.01.07.89 -Group or
Sponsored FEP -F67601/F67602 -565506/565507
-Prot. Plus FEP -F67801/F67802 -567503/567502
----------------------------------------------------------------------------------------------------------------------------
Block 2: Policies FEP* Policy Form No. Base Policy: (Co. 15)
with Policy VLB.01.0789, including
Dates on or Primary Insured Rider -Standard FEP -F67001/F67002 -565506/565507
after 7/1/96 up (PIR) and PIR Plus, -Group or
to start date of Form No. Sponsored FEP -F67601/F67602 -565506/565507
Block 3 ULR1.01.05.84, and -Prot. Plus FEP -F67801/F67802 -567503/567502
Other Insured Rider
(OIR), Form No. and, if applicable:
ULR2.01.5.84.
-PIR -560129/560612
-PIR PLUS -560610/560611
-OIR -560128/560613
----------------------------------------------------------------------------------------------------------------------------
Block 3: Start Successor to FEP*, PIR, Base Policy and, if To be determined To be determined
date of Policies PIR PLUS and OIR applicable: PIR,
to be PIR PLUS, and
determined OIR
----------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EFFECTIVE DATE
REINSURED FOR EACH REINSURANCE PREMIUM
BLOCKS POLICY/RIDER RATES DUE REINSURER
--------------------------------------------------------------------------------
Block 1: Policies The first Policy From Effective Date, at
with Policy Monthiversary on or Point in Scale Rates, per
Dates 6/30/96 after 6/1/96 Schedule I
and prior
--------------------------------------------------------------------------------
Block 2: Policies Policy/Rider Date From the Policy/Rider
with Policy Date, at Point in Scale
Dates on or Rates, per Schedule I
after 7/1/96 up
to start date of
Block 3
--------------------------------------------------------------------------------
Block 3: Start Policy/Rider Date From the Policy/Rider
date of Policies Date, at Point in Scale
to be Rates, per Schedule I
determined
--------------------------------------------------------------------------------
*Including any benefits payable under the Terminal Illness Accelerated Death
Benefit Rider form ACCDB-10/94.
Page 41 of 43
42
EXHIBIT A (CONT'D.)
Reinsurance Allowances:
-----------------------
Reinsurer shall pay Company, or Company shall offset against reinsurance
premiums due, the following allowances, stated as a percentage of the
applicable reinsurance premium:
BLOCKS 1 AND 2 BLOCK 3
First Policy Year: * *
Renewal Policy Years - Ultimate Classes: * *
Renewal Policy Years - Non-Ultimate Classes: * *
* Material has been omitted pursuant to a request for confidential
treatment. Omitted material has been filed separately.
Initial Ceding Allowance: There shall be no Initial Ceding Allowance on any
------------------------- Block.
Current Retention Schedule of Western Reserve Life:
---------------------------------------------------
Standard Thru
Status Age At Issue Table 4* Table 5-16**
------ ------------ ------------- ------------
All business All issue ages $500,000 $250,000
The above limits apply to the combination of the life plus ADB.
* Or Flat Extra ratings of up to and including $5.00 per thousand
annually
** Or Flat Extra ratings greater than $5.00 per thousand annually or on
any combination of Flat Extra and Substandard ratings
Page 42 of 43
43
EXHIBIT B
FORM OF LETTER OF CREDIT
------------------------
Effective Date
Western Reserve Life Assurance Co. of Ohio
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Dear Sirs:
By order of WMA Life Insurance Company Limited we are instructed to open a
clean irrevocable Letter of Credit in your favor for U.S. ____________(Amount).
We undertake that drawings under this Letter of Credit will be honored
upon presentation of your draft drawn on _________________(Issuer) at
____________(Address) prior to expiration date.
This Letter of Credit expires on _____________, but will automatically
extend for an additional two years if you have not received by registered mail,
notification of intention not to renew 30 days prior to the original expiry
date of each subsequent expiry date.
Page 43 Of 43
44
SCHEDULE I TO REINSURANCE AGREEMENT
SCHEDULE OF REINSURANCE PREMIUM RATES
This Schedule is dated June 1, 1996 and sets forth the Reinsurance Premium
Rates per $1,000 of Amount Reinsured. The monthly Reinsurance Premium shall be
paid at 1/12th the annual rate.
The rates in this Schedule are subject to the Company's table rating
percentages, if applicable, as described in Paragraph 2 of Article V. The
Company's current table percentages are:
Risk Table Percentage
---------- ----------
2 150%
3 175%
-each table thereafter- -an additional 25%
Schedule 1 - Page 1 of 5
45
YRT Premium Rates - Male Nonsmoker
Attained
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Ultimate Age
------------------------------------------------------------------------------------------------------------------------------------
0 15
1 16
2 17
3 18
4 19
--------------------------------------------------------------------------------------------------------------------
5 20
6 21
7 22
8 23
9 24
--------------------------------------------------------------------------------------------------------------------
10 25
11 26
12 27
13 28
14 29
--------------------------------------------------------------------------------------------------------------------
15 0.97 1.21 1.33 1.35 1.35 1.34 1.34 1.33 1.31 1.30 1.28 1.30 1.28 1.29 1.31 1.54 30
16 1.20 1.26 1.34 1.36 1.34 1.34 1.34 1.32 1.30 1.28 1.26 1.27 1.26 1.29 1.30 1.48 31
17 1.24 1.27 1.35 1.35 1.34 1.34 1.33 1.30 1.27 1.25 1.23 1.25 1.25 1.27 1.26 1.44 32
18 1.24 1.28 1.33 1.34 1.33 1.31 1.30 1.27 1.24 1.22 1.21 1.24 1.24 1.24 1.23 1.41 33
19 1.25 1.26 1.32 1.32 1.30 1.28 1.26 1.23 1.21 1.20 1.20 1.22 1.20 1.20 1.21 1.39 34
--------------------------------------------------------------------------------------------------------------------
20 1.22 1.25 1.29 1.28 1.26 1.24 1.21 1.19 1.18 1.18 1.18 1.18 1.17 1.19 1.21 1.38 35
21 1.21 1.22 1.25 1.24 1.21 1.18 1.16 1.15 1.15 1.16 1.14 1.14 1.15 1.18 1.20 1.41 36
22 1.18 1.18 1.20 1.18 1.15 1.13 1.12 1.12 1.13 1.12 1.11 1.12 1.14 1.17 1.24 1.46 37
23 1.13 1.13 1.14 1.11 1.09 1.08 1.08 1.09 1.08 1.08 1.09 1.11 1.13 1.21 1.29 1.52 38
24 1.08 1.07 1.07 1.05 1.04 1.04 1.05 1.04 1.04 1.06 1.08 1.10 1.16 1.25 1.34 1.59 39
--------------------------------------------------------------------------------------------------------------------
25 1.02 1.01 1.00 0.99 0.99 0.99 0.99 0.99 1.02 1.04 1.07 1.13 1.20 1.30 1.41 1.67 40
26 1.00 0.99 1.00 1.00 1.00 0.99 0.99 1.00 1.03 1.06 1.11 1.18 1.26 1.37 1.49 1.79 41
27 0.97 0.98 1.00 1.01 1.00 0.99 1.00 1.01 1.04 1.10 1.16 1.24 1.33 1.45 1.59 1.92 42
28 0.95 0.97 1.00 0.99 0.99 0.99 1.01 1.03 1.09 1.15 1.23 1.30 1.41 1.55 1.72 2.08 43
29 0.93 0.96 0.98 0.99 1.00 1.00 1.02 1.07 1.14 1.21 1.30 1.39 1.51 1.68 1.87 2.27 44
--------------------------------------------------------------------------------------------------------------------
30 0.91 0.93 0.97 0.99 1.01 1.02 1.07 1.13 1.21 1.29 1.38 1.49 1.64 1.83 2.05 2.49 45
31 0.88 0.90 0.97 0.99 1.02 1.06 1.12 1.20 1.28 1.37 1.49 1.62 1.79 2.01 2.25 2.73 46
32 0.85 0.89 0.97 1.00 1.06 1.12 1.19 1.27 1.37 1.48 1.63 1.78 1.97 2.21 2.48 3.01 47
33 0.83 0.88 0.97 1.04 1.12 1.18 1.27 1.36 1.49 1.62 1.79 1.96 2.17 2.44 2.74 3.30 48
34 0.82 0.88 1.01 1.09 1.18 1.25 1.36 1.48 1.63 1.78 1.98 2.17 2.41 2.71 3.02 3.63 49
--------------------------------------------------------------------------------------------------------------------
35 0.81 0.89 1.05 1.15 1.25 1.34 1.47 1.62 1.80 1.97 2.19 2.41 2.67 2.99 3.33 3.96 50
36 0.82 0.92 1.09 1.20 1.32 1.43 1.58 1.74 1.94 2.13 2.38 2.63 2.91 3.26 3.61 4.43 51
37 0.84 0.96 1.14 1.27 1.41 1.54 1.70 1.88 2.09 2.31 2.59 2.85 3.17 3.53 4.01 4.97 52
38 0.87 1.00 1.20 1.36 1.51 1.66 1.84 2.04 2.27 2.51 2.80 3.09 3.43 3.92 4.45 5.56 53
39 0.90 1.06 1.28 1.46 1.64 1.81 2.00 2.22 2.46 2.71 3.03 3.34 3.81 4.35 4.94 6.21 54
--------------------------------------------------------------------------------------------------------------------
40 0.93 1.13 1.38 1.58 1.79 1.98 2.19 2.42 2.67 2.93 3.27 3.69 4.23 4.83 5.48 6.94 55
41 0.98 1.21 1.50 1.73 1.96 2.18 2.40 2.62 2.89 3.16 3.60 4.09 4.69 5.36 6.07 7.72 56
42 1.04 1.31 1.63 1.90 2.15 2.40 2.62 2.85 3.11 3.48 3.97 4.52 5.19 5.93 6.69 8.59 57
43 1.11 1.42 1.79 2.09 2.37 2.64 2.86 3.08 3.43 3.84 4.38 4.99 5.75 6.55 7.38 9.58 58
44 1.19 1.56 1.97 2.31 2.61 2.90 3.11 3.41 3.78 4.22 4.82 5.51 6.34 7.22 8.16 10.70 59
--------------------------------------------------------------------------------------------------------------------
45 1.29 1.71 2.18 2.54 2.87 3.17 3.46 3.78 4.17 4.65 5.30 6.06 7.00 7.99 9.03 11.97 60
46 1.38 1.85 2.34 2.74 3.08 3.49 3.84 4.22 4.67 5.23 5.99 6.83 7.90 9.04 10.25 13.25 61
47 1.49 1.99 2.51 2.93 3.39 3.86 4.26 4.70 5.23 5.86 6.77 7.73 8.94 10.24 11.51 14.65 62
48 1.61 2.14 2.68 3.21 3.73 4.25 4.73 5.24 5.83 6.57 7.66 8.75 10.13 11.49 12.92 16.15 63
49 1.73 2.29 2.93 3.53 4.10 4.68 5.24 5.82 6.51 7.38 8.69 9.93 11.36 12.87 14.45 17.80 64
--------------------------------------------------------------------------------------------------------------------
50 1.86 2.50 3.20 3.86 4.51 5.15 5.78 6.46 7.28 8.31 9.86 11.15 12.73 14.39 16.16 19.61 65
51 2.04 2.75 3.49 4.22 4.95 5.64 6.38 7.19 8.15 9.37 11.09 12.51 14.22 16.07 18.06 21.63 66
52 2.25 3.01 3.81 4.62 5.40 6.18 7.05 8.01 9.15 10.46 12.45 13.99 15.88 17.93 20.21 23.88 67
53 2.47 3.29 4.14 5.02 5.90 6.78 7.81 8.95 10.16 11.66 13.94 15.64 17.72 20.04 22.62 26.36 68
54 2.72 3.60 4.49 5.46 6.46 7.46 8.67 9.89 11.28 12.97 15.60 17.47 19.80 22.40 25.33 29.10 69
--------------------------------------------------------------------------------------------------------------------
55 2.99 3.93 4.86 5.95 7.08 8.21 9.52 10.93 12.49 14.42 17.44 19.55 22.14 25.05 28.35 32.10 70
56 3.15 4.16 5.21 6.39 7.61 8.72 10.12 11.57 13.23 15.25 18.41 20.60 23.37 26.50 29.98 35.27 71
57 3.30 4.40 5.57 6.86 8.08 9.24 10.72 12.23 13.99 16.11 19.42 21.67 24.61 27.94 31.50 38.64 72
58 3.45 4.65 5.96 7.28 8.55 9.75 11.32 12.89 14.78 17.00 20.43 22.73 25.84 29.29 32.95 42.31 73
59 3.60 4.91 6.30 7.71 9.02 10.25 11.92 13.58 15.60 17.90 21.43 23.76 26.95 30.54 34.36 46.33 74
--------------------------------------------------------------------------------------------------------------------
60 3.75 5.11 6.63 8.12 9.48 10.75 12.55 14.28 16.43 18.81 22.41 24.66 27.95 31.74 35.74 50.77 75
61 3.85 5.29 6.95 8.53 9.94 11.26 13.19 14.98 17.26 19.69 23.26 25.44 28.87 32.89 37.10 55.68 76
62 3.92 5.45 7.27 8.93 10.40 11.78 13.82 15.67 18.08 20.47 24.01 26.11 29.71 34.00 38.42 61.11 77
63 3.95 5.58 7.57 9.34 10.86 12.27 14.45 16.33 18.80 21.16 24.66 26.68 30.48 35.05 39.67 67.05 78
64 3.96 5.67 7.87 9.75 11.31 12.74 15.04 16.89 19.43 21.77 25.21 27.15 31.13 36.00 40.79 73.52 79
--------------------------------------------------------------------------------------------------------------------
65 3.92 5.74 8.15 10.14 11.74 13.17 15.54 17.36 20.00 22.31 25.67 27.48 31.66 36.80 41.73 80.51 80
66 4.29 6.32 8.96 11.20 13.04 14.57 17.12 19.11 21.91 24.43 28.05 30.18 34.76 40.38 45.60 88.09 81
67 4.71 6.97 9.86 12.37 14.43 16.09 18.85 21.04 24.03 26.77 30.67 33.13 38.13 44.27 49.80 96.11 82
68 5.17 7.69 10.84 13.60 15.93 17.75 20.75 23.19 26.38 29.36 33.53 36.35 41.79 48.48 54.23 104.63 83
69 5.68 8.48 11.87 14.93 17.57 19.58 22.87 25.57 28.97 32.20 36.64 39.84 45.76 52.95 58.92 114.01 84
--------------------------------------------------------------------------------------------------------------------
70 6.24 9.31 12.97 16.37 19.39 21.62 25.22 28.23 31.82 35.28 39.98 43.62 49.96 57.71 64.09 124.28 85
71 6.83 10.21 14.16 17.95 21.41 23.90 27.84 31.15 34.93 38.62 43.59 47.63 54.44 62.96 69.73 135.43 86
72 7.46 11.18 15.46 19.71 23.66 26.43 30.73 34.35 38.29 42.23 47.39 51.90 59.38 68.71 75.85 147.47 87
73 8.15 12.26 16.90 21.66 26.17 29.22 33.89 37.84 41.94 46.06 51.42 56.61 64.78 74.96 82.44 160.39 88
74 8.90 13.45 18.49 23.82 28.94 32.29 37.33 41.64 45.81 50.12 55.84 61.77 70.66 81.72 89.50 174.01 89
75 9.74 14.77 20.25 26.19 31.98 35.64 41.09 45.70 49.93 54.60 60.66 57.37 77.01 88.99 96.92 188.09 90
--------------------------------------------------------------------------------------------------------------------
76 10.65 16.18 22.19 28.69 35.00 38.97 44.81 49.73 54.39 59.50 66.08 73.34 83.74 96.53 104.75 205.68 91
77 11.65 17.72 24.31 31.40 38.27 42.50 48.76 54.18 59.27 64.82 71.94 79.75 90.84 104.33 114.53 224.20 92
78 12.76 19.40 26.59 34.33 41.73 46.24 53.12 59.04 64.57 70.56 78.22 86.50 98.17 114.07 124.82 243.68 93
79 13.95 21.22 29.07 37.43 45.41 50.37 57.88 64.31 70.28 76.72 84.85 93.49 107.33 124.32 135.65 264.14 94
80 15.25 23.18 31.69 40.73 49.46 54.89 63.05 70.01 76.43 83.22 91.70 102.21 116.97 135.10 147.03 285.62 95
--------------------------------------------------------------------------------------------------------------------
308.14 96
331.72 97
356.40 98
382.20 99
409.15 100
Schedule 1 - Page 2 of 5
46
YRT PREMIUM RATES - MALE JUVENILE AND SMOKER
ATTAINED
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ULTIMATE AGE
-----------------------------------------------------------------------------------------------------------------------------------
0 1.97 1.32 1.02 0.94 0.85 0.79 0.77 0.71 0.68 0.68 0.64 0.68 0.71 0.79 0.98 1.33 15
1 1.35 1.00 0.96 0.88 0.81 0.78 0.72 0.69 0.68 0.64 0.67 0.71 0.78 0.96 1.13 1.79 16
2 1.02 0.94 0.90 0.83 0.79 0.73 0.70 0.69 0.64 0.67 0.69 0.78 0.94 1.10 1.48 1.97 17
3 0.96 0.88 0.85 0.82 0.75 0.71 0.70 0.65 0.67 0.70 0.76 0.93 1.08 1.45 1.63 2.10 18
4 0.89 0.83 0.83 0.77 0.73 0.71 0.66 0.68 0.70 0.76 0.91 1.07 1.41 1.59 1.72 2.23 19
----------------------------------------------------------------------------------------------------------------------
5 0.84 0.82 0.78 0.74 0.73 0.67 0.69 0.71 0.77 0.91 1.04 1.40 1.54 1.68 1.83 2.33 20
6 0.83 0.77 0.76 0.74 0.68 0.70 0.72 0.78 0.92 1.05 1.35 1.53 1.63 1.78 1.90 2.46 21
7 0.78 0.75 0.76 0.70 0.71 0.74 0.80 0.94 1.05 1.36 1.48 1.62 1.73 1.86 2.00 2.56 22
8 0.76 0.75 0.71 0.73 0.75 0.81 0.96 1.08 1.37 1.49 1.57 1.72 1.80 1.95 2.08 2.64 23
9 0.76 0.70 0.75 0.77 0.83 0.98 1.11 1.41 1.50 1.57 1.66 1.79 1.89 2.03 2.14 2.69 24
----------------------------------------------------------------------------------------------------------------------
10 0.71 0.74 0.78 0.85 1.01 1.13 1.45 1.55 1.59 1.67 1.73 1.88 1.97 2.09 2.19 2.72 25
11 0.74 0.77 0.87 1.04 1.17 1.49 1.60 1.63 1.68 1.73 1.82 1.95 2.02 2.13 2.20 2.67 26
12 0.78 0.86 1.07 1.21 1.54 1.64 1.69 1.73 1.75 1.82 1.89 2.01 2.06 2.15 2.16 2.62 27
13 0.87 1.05 1.24 1.61 1.69 1.74 1.79 1.80 1.84 1.89 1.94 2.05 2.08 2.11 2.12 2.58 28
14 1.06 1.22 1.65 1.77 1.79 1.84 1.87 1.90 1.91 1.95 1.98 2.06 2.05 2.07 2.09 2.55 29
----------------------------------------------------------------------------------------------------------------------
15 1.24 1.62 1.82 1.88 1.91 1.92 1.97 1.97 1.97 1.98 1.99 2.03 2.01 2.04 2.08 2.53 30
16 1.59 1.72 1.86 1.93 1.92 1.97 2.00 1.99 1.98 1.99 1.96 1.99 1.99 2.03 2.07 2.43 31
17 1.69 1.75 1.91 1.94 1.96 1.99 2.00 1.99 1.98 1.95 1.92 1.96 1.97 2.02 2.01 2.35 32
18 1.71 1.79 1.91 1.96 1.97 1.98 1.99 1.97 1.92 1.90 1.89 1.94 1.96 1.96 1.96 2.31 33
19 1.74 1.79 1.92 1.96 1.95 1.96 1.96 1.90 1.87 1.87 1.88 1.92 1.90 1.91 1.94 2.29 34
----------------------------------------------------------------------------------------------------------------------
20 1.73 1.80 1.91 1.93 1.92 1.91 1.87 1.83 1.82 1.84 1.86 1.85 1.85 1.89 1.94 2.28 35
21 1.74 1.79 1.87 1.88 1.86 1.82 1.79 1.78 1.79 1.81 1.79 1.80 1.82 1.88 1.94 2.40 36
22 1.71 1.75 1.81 1.80 1.76 1.73 1.72 1.73 1.75 1.74 1.74 1.77 1.81 1.89 2.05 2.54 37
23 1.66 1.69 1.73 1.69 1.66 1.64 1.66 1.68 1.67 1.68 1.71 1.75 1.81 1.99 2.18 2.71 38
24 1.60 1.61 1.60 1.57 1.57 1.57 1.60 1.59 1.61 1.65 1.70 1.75 1.90 2.11 2.34 2.90 39
----------------------------------------------------------------------------------------------------------------------
25 1.51 1.50 1.49 1.47 1.49 1.50 1.50 1.51 1.56 1.63 1.69 1.83 2.01 2.26 2.52 3.13 40
26 1.48 1.47 1.49 1.50 1.52 1.50 1.50 1.53 1.59 1.66 1.80 1.96 2.17 2.43 2.73 3.42 41
27 1.44 1.45 1.50 1.52 1.51 1.50 1.53 1.56 1.63 1.77 1.94 2.12 2.34 2.64 3.00 3.78 42
28 1.40 1.44 1.52 1.51 1.51 1.52 1.56 1.60 1.75 1.91 2.10 2.30 2.55 2.91 3.33 4.20 43
29 1.38 1.43 1.49 1.50 1.53 1.55 1.59 1.73 1.89 2.07 2.28 2.51 2.82 3.24 3.71 4.70 44
----------------------------------------------------------------------------------------------------------------------
30 1.35 1.38 1.47 1.51 1.55 1.58 1.72 1.87 2.06 2.26 2.50 2.78 3.15 3.62 4.18 5.27 45
31 1.29 1.34 1.47 1.53 1.59 1.70 1.86 2.04 2.25 2.48 2.79 3.11 3.53 4.09 4.71 5.89 46
32 1.24 1.32 1.48 1.56 1.70 1.84 2.03 2.23 2.48 2.76 3.13 3.51 3.99 4.62 5.28 6.58 47
33 1.21 1.31 1.50 1.67 1.84 2.00 2.22 2.46 2.77 3.11 3.53 3.98 4.53 5.19 5.94 7.31 48
34 1.19 1.31 1.59 1.79 2.00 2.19 2.45 2.75 3.13 3.51 4.02 4.52 5.11 5.85 6.64 8.12 49
----------------------------------------------------------------------------------------------------------------------
35 1.17 1.36 1.70 1.94 2.18 2.41 2.74 3.11 3.55 4.01 4.59 5.12 5.78 6.56 7.42 8.97 50
36 1.22 1.45 1.82 2.08 2.36 2.64 3.01 3.43 3.93 4.43 5.05 5.66 6.37 7.23 8.13 10.16 51
37 1.28 1.55 1.95 2.26 2.59 2.92 3.33 3.80 4.34 4.88 5.57 6.22 7.02 7.93 9.13 11.51 52
38 1.36 1.66 2.11 2.48 2.86 3.25 3.71 4.22 4.79 5.38 6.11 6.84 7.69 8.91 10.26 13.01 53
39 1.44 1.80 2.32 2.75 3.19 3.64 4.14 4.67 5.28 5.89 6.69 7.47 8.64 10.01 11.50 14.68 54
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40 1.53 1.97 2.57 3.07 3.58 4.09 4.60 5.16 5.79 6.46 7.29 8.37 9.70 11.22 12.87 16.55 55
41 1.66 2.19 2.87 3.45 4.03 4.58 5.12 5.69 6.34 7.03 8.14 9.37 10.88 12.57 14.39 18.32 56
42 1.82 2.44 3.23 3.89 4.51 5.13 5.67 6.26 6.91 7.84 9.09 10.47 12.18 14.06 15.79 20.27 57
43 2.00 2.74 3.64 4.37 5.06 5.71 6.28 6.85 7.72 8.75 10.12 11.68 13.61 15.44 17.33 22.47 58
44 2.21 3.09 4.09 4.91 5.65 6.37 6.91 7.68 8.62 9.74 11.26 13.01 14.94 16.95 19.05 24.95 59
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45 2.46 3.47 4.60 5.49 6.30 7.06 7.80 8.62 9.61 10.83 12.50 14.24 16.40 18.64 20.96 27.73 60
46 2.70 3.81 5.01 5.99 6.85 7.88 8.77 9.73 10.89 12.31 14.08 16.00 18.43 20.99 23.66 30.48 61
47 2.97 4.16 5.44 6.49 7.63 8.80 9.84 10.97 12.32 13.76 15.84 18.02 20.75 23.65 26.41 33.47 62
48 3.26 4.54 5.88 7.20 8.50 9.81 11.02 12.35 13.69 15.36 17.85 20.31 23.39 26.37 29.45 36.65 63
49 3.57 4.93 6.51 8.00 9.45 10.91 12.33 13.65 15.21 17.18 20.15 22.92 26.07 29.35 32.73 40.09 64
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50 3.90 5.48 7.20 8.85 10.49 12.12 13.55 15.09 16.93 19.25 22.76 25.57 29.02 32.58 36.35 43.83 65
51 4.36 6.10 7.95 9.79 11.62 13.22 14.89 16.72 18.87 21.59 25.42 28.50 32.20 36.13 40.32 47.50 66
52 4.88 6.77 8.76 10.80 12.64 14.42 16.39 18.54 21.06 23.95 28.36 31.67 35.70 40.03 44.34 51.51 67
53 5.45 7.50 9.63 11.70 13.74 15.74 18.06 20.59 23.26 26.54 31.55 35.16 39.55 43.96 48.77 55.83 68
54 6.09 8.30 10.40 12.67 14.96 17.21 19.93 22.62 25.65 29.32 35.06 38.99 43.44 48.29 53.62 60.51 69
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55 6.79 9.03 11.22 13.74 16.32 18.84 21.75 24.83 28.21 32.37 38.91 42.87 47.71 53.03 58.93 65.51 70
56 7.11 9.51 11.95 14.67 17.42 19.88 22.96 26.10 29.66 33.97 40.36 44.37 49.44 55.05 61.14 70.60 71
57 7.41 10.01 12.71 15.66 18.37 20.91 24.13 27.37 31.11 35.29 41.79 45.81 51.11 56.97 63.02 75.88 72
58 7.72 10.52 13.52 16.51 19.32 21.90 25.29 28.63 32.30 36.59 43.16 47.17 52.65 58.56 64.65 81.47 73
59 8.02 11.04 14.20 17.35 20.22 22.86 26.44 29.63 33.48 37.86 44.45 48.38 53.85 59.89 66.09 87.45 74
----------------------------------------------------------------------------------------------------------------------
60 8.30 11.42 14.86 18.15 21.10 23.79 27.34 30.60 34.62 39.07 45.60 49.24 54.77 61.02 67.38 93.93 75
61 8.45 11.75 15.47 18.92 21.95 24.49 28.22 31.52 35.71 40.17 46.43 49.81 55.46 61.98 68.54 100.92 76
62 8.55 12.00 16.05 19.67 22.58 25.15 29.05 32.37 36.70 41.01 46.99 50.13 55.94 62.79 69.53 108.50 77
63 8.56 12.19 16.59 20.22 23.17 25.74 29.81 33.11 37.43 41.62 47.31 50.21 56.24 63.40 70.33 116.58 78
64 8.50 12.30 16.95 20.74 23.69 26.24 30.45 33.59 37.96 42.04 47.42 50.07 56.28 63.79 70.81 125.13 79
----------------------------------------------------------------------------------------------------------------------
65 8.33 12.23 17.26 21.19 24.13 26.62 30.87 33.86 38.31 42.28 47.32 49.64 56.05 63.84 70.89 134.11 80
66 9.02 13.28 18.67 23.01 26.35 28.93 33.39 36.58 41.17 45.36 50.67 53.42 60.28 68.60 75.85 143.56 81
67 9.76 14.42 20.20 24.97 28.64 31.36 36.07 39.51 44.28 48.68 54.29 57.45 64.77 73.62 81.04 153.20 82
68 10.57 15.65 21.82 26.98 31.04 33.95 38.96 42.70 47.63 52.28 58.15 61.73 69.48 78.90 86.33 163.07 83
69 11.44 16.97 23.48 29.06 33.61 36.75 42.11 46.17 51.27 56.11 62.21 66.22 74.45 84.30 91.73 173.69 84
----------------------------------------------------------------------------------------------------------------------
70 12.38 18.33 25.19 31.28 36.38 39.80 45.54 49.94 55.16 60.16 66.46 70.96 79.53 89.85 97.54 185.00 85
71 13.33 19.75 27.00 33.66 39.40 43.12 49.26 53.99 59.29 64.41 70.90 75.81 84.74 95.82 103.71 196.92 86
72 14.33 21.25 28.94 36.25 42.69 46.74 53.26 58.31 63.63 68.87 75.42 80.78 90.35 102.19 110.20 209.37 87
73 15.38 22.86 31.03 39.05 46.28 50.64 57.53 62.88 68.21 73.42 80.02 86.13 96.33 108.91 116.96 222.27 88
74 16.51 24.62 33.29 42.10 50.14 54.80 62.04 67.73 72.89 78.07 84.95 91.84 102.65 115.95 123.95 235.28 89
75 17.73 26.52 35.74 45.35 54.26 59.21 66.82 72.72 77.70 83.07 90.19 97.86 109.25 123.25 130.98 248.03 90
----------------------------------------------------------------------------------------------------------------------
76 19.03 28.48 38.38 48.66 58.14 63.37 71.29 77.39 82.74 88.46 95.99 104.04 115.97 130.45 138.07 264.41 91
77 20.43 30.58 41.17 52.13 62.22 67.60 75.87 82.42 88.12 94.15 102.04 110.43 122.75 137.52 147.18 280.85 92
78 21.93 32.80 44.11 55.79 66.38 71.95 80.80 87.77 93.78 100.09 108.32 116.88 129.39 146.58 156.32 297.32 93
79 23.51 35.14 47.20 59.52 70.64 76.62 86.05 93.41 99.69 106.24 114.65 123.21 137.92 155.69 165.48 313.77 94
80 25.17 37.59 50.35 63.33 75.23 81.59 91.58 99.30 105.82 112.44 120.85 131.33 146.48 164.81 174.62 330.15 95
----------------------------------------------------------------------------------------------------------------------
346.40 96
362.48 97
378.34 98
393.91 99
409.15 100
Schedule 1 - Page 3 of 5
47
YRT Premium Rates - Female Nonsmoker
1 2 3 4 5 6 7 8 9 10 11 12 13 14
-----------------------------------------------------------------------------------------------------------------------------------
0
1
2
3
4
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5
6
7
8
9
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10
11
12
13
14
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15 0.62 0.66 0.68 0.68 0.68 0.68 0.69 0.69 0.72 0.71 0.71 0.73 0.74 0.76
16 0.63 0.67 0.69 0.68 0.68 0.69 0.69 0.70 0.72 0.71 0.72 0.74 0.76 0.78
17 0.64 0.68 0.68 0.68 0.69 0.69 0.69 0.70 0.72 0.72 0.73 0.75 0.78 0.81
18 0.65 0.67 0.68 0.68 0.69 0.69 0.69 0.70 0.72 0.73 0.75 0.77 0.80 0.82
19 0.64 0.67 0.68 0.69 0.69 0.69 0.69 0.70 0.73 0.74 0.77 0.79 0.82 0.84
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20 0.64 0.67 0.68 0.68 0.68 0.68 0.69 0.71 0.74 0.75 0.79 0.81 0.83 0.86
21 0.64 0.66 0.68 0.68 0.68 0.68 0.70 0.72 0.75 0.76 0.80 0.82 0.85 0.89
22 0.63 0.66 0.67 0.67 0.68 0.69 0.70 0.73 0.76 0.77 0.82 0.84 0.88 0.93
23 0.62 0.65 0.66 0.67 0.68 0.69 0.71 0.74 0.77 0.78 0.84 0.87 0.92 0.98
24 0.62 0.64 0.66 0.67 0.68 0.69 0.72 0.75 0.77 0.79 0.86 0.91 0.97 1.04
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25 0.61 0.63 0.66 0.67 0.69 0.70 0.73 0.76 0.78 0.81 0.90 0.96 1.03 1.12
26 0.61 0.63 0.66 0.68 0.70 0.71 0.74 0.77 0.80 0.84 0.93 1.00 1.08 1.18
27 0.61 0.64 0.67 0.69 0.71 0.73 0.76 0.79 0.83 0.87 0.98 1.06 1.14 1.25
28 0.61 0.64 0.68 0.70 0.72 0.75 0.78 0.82 0.87 0.92 1.03 1.11 1.21 1.36
29 0.62 0.65 0.68 0.71 0.74 0.77 0.81 0.86 0.92 0.97 1.09 1.18 1.32 1.49
------------------------------------------------------------------------------------------------------------------------------
30 0.62 0.65 0.68 0.72 0.76 0.80 0.85 0.91 0.97 1.03 1.16 1.30 1.45 1.62
31 0.62 0.65 0.69 0.73 0.78 0.84 0.90 0.96 1.03 1.10 1.27 1.42 1.57 1.75
32 0.62 0.65 0.70 0.76 0.82 0.89 0.95 1.03 1.10 1.21 1.40 1.55 1.70 1.90
33 0.63 0.66 0.71 0.79 0.86 0.94 1.02 1.10 1.21 1.34 1.53 1.68 1.84 2.05
34 0.63 0.67 0.74 0.82 0.91 1.01 1.09 1.21 1.34 1.47 1.66 1.82 1.99 2.20
------------------------------------------------------------------------------------------------------------------------------
35 0.64 0.69 0.76 0.86 0.97 1.08 1.21 1.34 1.47 1.60 1.81 1.97 2.14 2.36
36 0.66 0.72 0.80 0.91 1.03 1.19 1.34 1.48 1.61 1.76 1.98 2.15 2.33 2.57
37 0.69 0.76 0.85 0.97 1.14 1.31 1.47 1.62 1.77 1.93 2.15 2.34 2.53 2.81
38 0.71 0.80 0.90 1.07 1.25 1.44 1.60 1.77 1.94 2.11 2.35 2.55 2.76 3.11
39 0.74 0.85 0.99 1.18 1.37 1.58 1.76 1.94 2.11 2.31 2.55 2.78 3.05 3.44
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40 0.78 0.92 1.09 1.29 1.50 1.73 1.92 2.12 2.31 2.52 2.79 3.07 3.37 3.84
41 0.84 1.01 1.19 1.41 1.64 1.89 2.09 2.31 2.52 2.76 3.09 3.40 3.75 4.28
42 0.91 1.10 1.30 1.55 1.80 2.06 2.28 2.52 2.77 3.07 3.42 3.78 4.17 4.79
43 0.98 1.20 1.43 1.69 1.96 2.24 2.49 2.76 3.07 3.40 3.81 4.22 4.66 5.27
44 1.05 1.31 1.57 1.85 2.14 2.44 2.72 3.06 3.40 3.80 4.25 4.71 5.11 5.80
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45 1.14 1.44 1.71 2.02 2.33 2.67 3.01 3.39 3.80 4.26 4.75 5.17 5.61 6.39
46 1.22 1.55 1.86 2.19 2.55 2.96 3.36 3.82 4.29 4.82 5.29 5.77 6.29 7.17
47 1.32 1.68 2.01 2.39 2.83 3.29 3.77 4.31 4.84 5.36 5.89 6.45 7.04 8.03
48 1.41 1.81 2.20 2.64 3.13 3.68 4.24 4.87 5.38 5.96 6.57 7.21 7.86 8.93
49 1.52 1.97 2.42 2.91 3.49 4.12 4.77 5.41 5.99 6.65 7.32 8.03 8.73 9.92
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50 1.64 2.16 2.67 3.24 3.90 4.62 5.29 6.02 6.67 7.40 8.14 8.89 9.67 10.99
51 1.80 2.37 2.96 3.61 4.36 5.09 5.86 6.70 7.42 8.22 8.99 9.83 10.70 12.19
52 1.97 2.63 3.29 4.03 4.80 5.62 6.51 7.46 8.23 9.08 9.93 10.86 11.84 13.52
53 2.17 2.91 3.67 4.42 5.29 6.22 7.22 8.28 9.08 10.01 10.94 11.99 13.10 15.01
54 2.39 3.23 4.03 4.86 5.83 6.87 7.99 9.14 10.01 11.02 12.05 13.25 14.52 16.68
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55 2.65 3.54 4.43 5.35 6.43 7.58 8.79 10.07 11.01 12.14 13.29 14.65 16.11 18.55
56 2.80 3.76 4.72 5.71 6.84 8.01 9.28 10.62 11.65 12.89 14.25 15.72 17.30 19.94
57 2.96 4.00 5.03 6.07 7.23 8.44 9.77 11.19 12.33 13.70 15.30 16.89 18.60 21.51
58 3.14 4.24 5.34 6.42 7.62 8.87 10.27 11.78 13.06 14.56 16.43 18.15 20.05 22.90
59 3.31 4.49 5.63 6.76 8.01 9.32 10.80 12.41 13.83 15.49 17.66 19.57 21.34 24.48
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60 3.49 4.71 5.92 7.11 8.41 9.78 11.35 13.08 14.65 16.47 19.05 20.82 22.81 26.31
61 3.65 4.94 6.21 7.47 8.83 10.26 11.93 13.77 15.52 17.57 20.27 22.26 24.51 28.41
62 3.80 5.16 6.51 7.85 9.27 10.77 12.54 14.50 16.48 18.49 21.67 23.91 26.45 30.79
63 3.95 5.39 6.82 8.24 9.73 11.30 13.17 15.29 17.26 19.53 23.28 25.80 28.66 33.49
64 4.10 5.62 7.14 8.66 10.21 11.84 13.86 15.90 18.14 20.72 25.13 27.95 31.16 36.52
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65 4.26 5.86 7.48 9.09 10.70 12.43 14.37 16.59 19.15 22.07 27.24 30.39 33.97 39.88
66 4.58 6.32 8.08 9.83 11.61 13.33 15.49 17.99 20.90 24.24 29.95 33.51 37.53 44.05
67 4.94 6.82 8.73 10.67 12.45 14.36 16.78 19.61 22.91 26.72 33.01 37.01 41.47 48.58
68 5.34 7.37 9.48 11.43 13.41 15.55 18.27 21.46 25.20 29.54 36.45 40.88 45.75 54.03
69 5.77 8.00 10.15 12.31 14.51 16.92 19.99 23.58 27.81 32.71 40.25 45.09 50.90 59.92
------------------------------------------------------------------------------------------------------------------------------
70 6.26 8.57 10.93 13.33 15.78 18.50 21.94 25.98 30.73 36.23 44.38 50.14 56.46 66.22
71 6.71 9.23 11.84 14.49 17.25 20.29 24.15 28.67 33.97 40.06 49.34 55.60 62.43 72.94
72 7.23 9.98 12.87 15.83 18.91 22.33 26.63 31.65 37.49 44.68 54.69 61.45 68.79 80.06
73 7.83 10.86 14.06 17.36 20.79 24.61 29.36 34.88 41.72 49.68 60.43 67.68 75.53 87.57
74 8.52 11.86 15.42 19.09 22.91 27.12 32.33 38.76 46.29 55.06 66.54 74.29 82.64 95.46
75 9.32 13.00 16.96 21.03 25.23 29.84 35.89 42.95 51.20 60.83 73.01 81.25 90.12 103.71
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76 10.28 14.40 18.82 23.35 27.99 33.38 40.04 47.76 56.76 67.20 80.39 89.16 98.57 113.08
77 11.38 15.98 20.90 25.90 31.31 37.24 44.53 52.95 62.70 73.99 88.22 97.52 107.47 122.92
78 12.61 17.74 23.18 28.97 34.92 41.41 49.36 58.49 69.03 81.19 96.49 106.33 116.83 134.67
79 13.99 19.66 25.91 32.31 38.83 45.90 54.52 64.39 75.75 88.80 105.21 115.59 127.99 147.12
80 15.50 21.98 28.90 35.92 43.04 50.69 60.02 70.65 82.85 96.81 114.36 126.63 139.82 160.29
------------------------------------------------------------------------------------------------------------------------------
Attained
15 Ultimate Age
-----------------------------------------
0 15
1 16
2 17
3 18
4 19
------------------------
5 20
6 21
7 22
8 23
9 24
-----------------------
10 25
11 26
12 27
13 28
14 29
-----------------------
15 0.79 0.90 30
16 0.81 0.91 31
17 0.83 0.92 32
18 0.85 0.94 33
19 0.87 0.96 34
-----------------------
20 0.90 1.00 35
21 0.94 1.04 36
22 0.99 1.10 37
23 1.06 1.17 38
24 1.13 1.25 39
-----------------------
25 1.22 1.34 40
26 1.29 1.48 41
27 1.41 1.64 42
28 1.54 1.81 43
29 1.67 1.98 44
-----------------------
30 1.80 2.18 45
31 1.94 2.38 46
32 2.09 2.60 47
33 2.23 2.83 48
34 2.39 3.08 49
-----------------------
35 2.55 3.37 50
36 2.79 3.72 51
37 3.08 4.11 52
38 3.41 4.58 53
39 3.80 5.10 54
-----------------------
40 4.24 5.69 55
41 4.73 6.24 56
42 5.20 6.85 57
43 5.72 7.52 58
44 6.30 8.26 59
-----------------------
45 6.93 9.05 60
46 7.77 9.85 61
47 8.66 10.71 62
48 9.64 11.62 63
49 10.70 12.62 64
-----------------------
50 11.89 13.71 65
51 13.21 14.92 66
52 14.69 16.25 67
53 16.34 17.73 68
54 18.20 19.35 69
-----------------------
55 20.29 21.19 70
56 21.90 22.92 71
57 23.33 24.91 72
58 24.97 27.20 73
59 26.86 29.86 74
-----------------------
60 29.03 32.93 75
61 31.50 36.44 76
62 34.29 40.44 77
63 37.43 44.96 78
64 40.92 49.99 79
-----------------------
65 44.72 55.49 80
66 49.33 62.12 81
67 54.88 69.34 82
68 60.87 77.15 83
69 67.30 85.55 84
-----------------------
70 74.15 94.53 85
71 81.41 104.10 86
72 89.07 114.24 87
73 97.12 124.97 88
74 105.55 136.27 89
75 114.33 148.14 90
-----------------------
76 124.29 162.30 91
77 136.16 177.31 92
78 148.75 193.19 93
79 162.07 209.95 94
80 176.12 227.61 95
-----------------------
246.18 96
265.68 97
286.12 98
307.53 99
329.91 100
Schedule 1 - Page 4 of 5
48
YRT Premium Rates - Female Juvenile and Smoker
Attained
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Ultimate Age
-----------------------------------------------------------------------------------------------------------------------------
0 1.16 0.71 0.67 0.64 0.61 0.59 0.57 0.56 0.57 0.56 0.57 0.59 0.62 0.65 0.70 0.82 15
1 0.69 0.68 0.65 0.61 0.59 0.58 0.56 0.56 0.57 0.57 0.58 0.61 0.64 0.69 0.74 0.86 l6
2 0.65 0.65 0.62 0.60 0.58 0.56 0.56 0.56 0.58 0.59 0.61 0.64 0.68 0.73 0.77 0.90 17
3 0.63 0.63 0.61 0.58 0.56 0.56 0.56 0.56 0.59 0.61 0.63 0.68 0.72 0.76 0.80 0.93 18
4 0.61 0.61 0.59 0.56 0.56 0.56 0.56 0.58 0.62 0.63 0.67 0.71 0.75 0.79 0.83 0.95 19
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5 0.59 0.59 0.57 0.56 0.56 0.57 0.58 0.60 0.64 0.67 0.70 0.74 0.78 0.81 0.84 0.96 20
6 0.57 0.57 0.57 0.56 0.57 0.58 0.60 0.62 0.68 0.70 0.73 0.77 0.80 0.83 0.86 0.98 21
7 0.56 0.57 0.57 0.57 0.59 0.60 0.62 0.66 0.71 0.73 0.76 0.79 0.81 0.84 0.87 1.01 22
8 0.56 0.57 0.58 0.59 0.61 0.63 0.66 0.69 0.74 0.76 0.78 0.80 0.83 0.86 0.89 1.02 23
9 0.56 0.58 0.60 0.61 0.63 0.66 0.69 0.72 0.77 0.78 0.79 0.81 0.84 0.87 0.90 1.03 24
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10 0.57 0.60 0.62 0.63 0.67 0.69 0.72 0.74 0.79 0.80 0.80 0.83 0.86 0.88 0.91 1.04 25
11 0.58 0.62 0.64 0.67 0.70 0.72 0.74 0.76 0.81 0.81 0.82 0.85 0.87 0.89 0.91 1.07 26
12 0.60 0.65 0.68 0.70 0.73 0.75 0.76 0.78 0.82 0.83 0.83 0.85 0.88 0.90 0.94 1.10 27
13 0.63 0.69 0.72 0.73 0.76 0.77 0.78 0.79 0.83 0.84 0.84 0.86 0.88 0.92 0.96 1.13 28
14 0.66 0.72 0.75 0.76 0.78 0.78 0.79 0.80 0.85 0.85 0.85 0.87 0.91 0.95 0.99 1.17 29
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15 0.69 0.75 0.78 0.78 0.79 0.80 0.80 0.82 0.86 0.86 0.85 0.89 0.93 0.97 1.02 1.22 30
16 0.71 0.77 0.79 0.79 0.80 0.81 0.81 0.83 0.86 0.86 0.88 0.92 0.96 1.02 1.08 1.26 31
17 0.73 0.78 0.79 0.79 0.80 0.81 0.82 0.83 0.87 0.89 0.91 0.95 1.01 1.07 1.12 1.29 32
18 0.73 0.78 0.79 0.80 0.81 0.81 0.82 0.84 0.89 0.91 0.95 1.00 1.06 1.11 1.16 1.34 33
19 0.73 0.78 0.80 0.81 0.81 0.82 0.83 0.86 0.91 0.93 0.99 1.05 1.10 1.15 1.22 1.40 34
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20 0.73 0.78 0.80 0.80 0.81 0.82 0.84 0.88 0.93 0.96 1.04 1.09 1.14 1.20 1.28 1.48 35
21 0.73 0.78 0.80 0.80 0.81 0.83 0.86 0.90 0.96 1.00 1.07 1.12 1.19 1.27 1.37 1.58 36
22 0.73 0.77 0.79 0.80 0.82 0.84 0.87 0.93 0.99 1.02 1.11 1.17 1.25 1.35 1.48 1.70 37
23 0.72 0.76 0.78 0.81 0.83 0.85 0.90 0.96 1.01 1.05 1.16 1.23 1.34 1.46 1.61 1.83 38
24 0.71 0.75 0.79 0.81 0.84 0.87 0.93 0.99 1.04 1.08 1.22 1.32 1.44 1.58 1.75 1.98 39
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25 0.70 0.75 0.79 0.82 0.86 0.89 0.94 1.01 1.07 1.12 1.30 1.41 1.56 1.72 1.92 2.15 40
26 0.71 0.76 0.81 0.85 0.90 0.92 0.98 1.05 1.11 1.19 1.37 1.51 1.66 1.85 2.06 2.44 41
27 0.72 0.77 0.83 0.88 0.92 0.96 1.02 1.10 1.18 1.26 1.47 1.61 1.78 1.99 2.30 2.75 42
28 0.73 0.78 0.85 0.90 0.95 1.00 1.07 1.16 1.25 1.35 1.57 1.73 1.92 2.22 2.56 3.09 43
29 0.74 0.80 0.87 0.92 0.99 1.05 1.13 1.24 1.34 1.45 1.69 1.87 2.14 2.47 2.82 3.44 44
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30 0.76 0.81 0.88 0.95 1.03 1.12 1.21 1.33 1.45 1.57 1.83 2.09 2.39 2.73 3.08 3.82 45
31 0.77 0.82 0.90 0.99 1.09 1.20 1.31 1.44 1.57 1.71 2.05 2.33 2.64 2.99 3.36 4.30 46
32 0.77 0.84 0.93 1.04 1.16 1.29 1.42 1.56 1.70 1.93 2.29 2.59 2.90 3.28 3.72 4.81 47
33 0.79 0.86 0.96 1.10 1.25 1.40 1.55 1.70 1.92 2.17 2.55 2.85 3.18 3.63 4.08 5.37 48
34 0.80 0.89 1.01 1.17 1.34 1.53 1.69 1.93 2.17 2.43 2.81 3.14 3.53 4.00 4.47 5.98 49
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35 0.83 0.92 1.06 1.25 1.45 1.68 1.93 2.19 2.43 2.70 3.10 3.49 3.89 4.40 4.87 6.68 50
36 0.87 0.98 1.14 1.35 1.58 1.89 2.17 2.45 2.71 3.02 3.50 3.91 4.34 4.91 5.46 7.55 51
37 0.92 1.05 1.23 1.47 1.78 2.13 2.43 2.73 3.03 3.41 3.92 4.37 4.84 5.50 6.17 8.51 52
38 0.97 1.14 1.34 1.66 2.01 2.39 2.70 3.04 3.42 3.83 4.38 4.87 5.40 6.23 6.97 9.66 53
39 1.04 1.23 1.51 1.87 2.25 2.65 3.01 3.43 3.84 4.30 4.88 5.44 6.10 7.04 7.93 10.95 54
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40 1.11 1.38 1.70 2.09 2.51 2.95 3.39 3.85 4.30 4.81 5.47 6.15 6.89 8.02 9.01 12.44 55
41 1.23 1.55 1.91 2.33 2.79 3.32 3.80 4.31 4.81 5.40 6.19 6.95 7.82 9.12 10.26 13.68 56
42 1.36 1.73 2.13 2.60 3.15 3.72 4.25 4.81 5.41 6.13 6.99 7.89 8.87 10.39 11.32 15.06 57
43 1.50 1.93 2.38 2.94 3.53 4.16 4.74 5.40 6.13 6.96 7.95 8.97 10.08 11.47 12.50 16.60 58
44 1.65 2.15 2.69 3.30 3.95 4.65 5.31 6.12 6.96 7.94 9.04 10.20 11.11 12.67 13.81 18.28 59
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45 1.81 2.43 3.03 3.70 4.42 5.20 6.01 6.93 7.93 9.06 10.29 11.25 12.25 14.02 15.25 20.06 60
46 2.01 2.70 3.37 4.12 4.96 5.91 6.85 7.97 9.13 10.45 11.51 12.61 13.79 15.80 17.17 21.88 61
47 2.23 3.00 3.75 4.61 5.61 6.71 7.86 9.17 10.51 11.67 12.88 14.16 15.50 17.74 19.19 23.83 62
48 2.47 3.33 4.20 5.21 6.36 7.66 9.01 10.56 11.73 13.05 14.42 15.88 17.37 19.79 21.40 25.91 63
49 2.73 3.71 4.74 5.89 7.24 8.74 10.34 11.80 13.10 14.60 16.14 17.75 19.33 22.03 23.82 28.17 64
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50 3.03 4.18 5.35 6.69 8.25 9.99 11.51 13.18 14.65 16.32 18.00 19.71 21.47 24.48 26.51 30.65 65
51 3.40 4.70 6.07 7.60 9.41 11.08 12.82 14.73 16.36 18.19 19.94 21.85 23.81 27.19 29.50 32.89 66
52 3.81 5.32 6.90 8.65 10.40 12.28 14.29 16.45 18.21 20.14 22.05 24.17 26.39 30.21 32.36 35.31 67
53 4.30 6.03 7.84 9.54 11.51 13.63 15.91 18.32 20.14 22.25 24.35 26.74 29.27 33.08 35.51 37.94 68
54 4.86 6.84 8.65 10.54 12.75 15.12 17.66 20.27 22.24 24.55 26.88 29.59 31.99 36.24 38.97 40.79 69
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55 5.50 7.53 9.55 11.65 14.11 16.72 19.48 22.38 24.51 27.08 29.69 32.28 34.99 39.72 42.78 43.98 70
56 5.85 8.03 10.22 12.47 15.05 17.69 20.58 23.62 25.97 28.79 31.39 34.14 37.02 42.05 45.46 46.79 71
57 6.22 8.57 10.92 13.30 15.92 18.67 21.69 24.91 27.51 30.15 33.20 36.12 39.19 44.64 47.64 50.02 72
58 6.61 9.13 11.62 14.07 16.80 19.65 22.83 26.26 28.72 31.58 35.13 38.23 41.59 46.75 50.15 53.71 73
59 7.01 9.68 12.28 14.86 17.68 20.66 24.03 27.27 29.97 33.08 37.19 40.57 43.54 49.16 53.03 57.95 74
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60 7.41 10.20 12.94 15.65 18.60 21.70 24.90 28.31 31.27 34.65 39.48 42.47 45.78 51.94 56.32 62.77 75
61 7.77 10.71 13.59 16.47 19.55 22.46 25.79 29.36 32.62 36.38 41.34 44.65 48.35 55.10 60.03 68.21 76
62 8.12 11.21 14.27 17.32 20.23 23.23 26.70 30.44 34.10 37.66 43.47 47.15 51.28 58.68 64.17 74.30 77
63 8.46 11.72 14.97 17.94 20.93 24.00 27.61 31.61 35.13 39.12 45.92 50.01 54.59 62.67 68.75 81.04 78
64 8.80 12.25 15.47 18.57 21.64 24.77 28.59 32.33 36.32 40.81 48.71 53.23 58.28 67.06 73.73 88.35 79
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65 9.15 12.60 15.97 19.22 22.35 25.60 29.17 33.17 37.69 42.72 51.86 56.83 62.35 71.84 79.00 96.12 80
66 9.74 13.42 17.02 20.49 23.89 27.03 30.94 35.38 40.44 46.11 55.99 61.50 67.60 77.81 85.41 105.40 81
67 10.39 14.30 18.15 21.91 25.21 28.66 32.98 37.91 43.56 49.92 60.58 66.65 73.24 84.11 93.08 ll5.18 82
68 11.08 15.25 19.41 23.12 26.72 30.53 35.31 40.78 47.07 54.17 65.64 72.19 79.20 91.63 101.08 125.39 83
69 11.83 16.32 20.49 24.51 28.46 32.67 37.95 44.01 50.98 58.87 71.07 78.03 86.31 99.48 109.35 135.97 84
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70 12.67 17.22 21.72 26.10 30.44 35.10 40.92 47.60 55.29 63.94 76.80 85.01 93.74 107.59 117.82 146.83 85
71 13.39 18.26 23.14 27.92 32.69 37.83 44.22 51.56 59.93 69.31 83.65 92.29 101.41 115.90 126.42 157.92 86
72 14.22 19.45 24.75 29.99 35.22 40.86 47.86 55.81 64.83 75.72 90.79 99.81 109.28 124.32 135.10 169.16 87
73 15.17 20.82 26.59 32.31 38.03 44.20 51.76 60.30 70.68 82.44 98.16 107.52 117.27 132.82 143.78 180.49 88
74 16.26 22.37 28.65 34.89 41.12 47.78 55.86 65.65 76.80 89.42 105.70 115.33 125.33 141.31 152.41 191.83 89
75 17.49 24.11 30.95 37.72 44.43 51.54 60.77 71.23 83.13 96.60 113.35 123.21 133.40 149.75 160.92 203.11 90
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76 18.98 26.23 33.74 41.10 48.32 56.50 66.39 77.53 90.12 104.31 121.91 131.98 142.32 159.15 170.38 216.57 91
77 20.65 28.59 36.75 44.70 52.97 61.72 72.26 84.06 97.32 112.18 130.58 140.81 151.26 168.51 181.67 230.07 92
78 22.49 31.14 39.96 48.99 57.87 67.18 78.34 90.76 104.65 120.16 139.31 149.65 160.15 179.67 192.99 243.54 93
79 24.49 33.85 43.80 53.52 62.98 72.83 84.59 97.60 112.09 128.19 148.06 158.44 170.75 190.87 204.29 256.90 94
80 26.62 37.10 47.84 58.24 68.27 78.63 90.96 104.54 119.59 136.24 156.76 168.94 181.40 202.04 215.49 270.07 95
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282.96 96
295.48 97
307.54 98
319.05 99
329.91 100
Schedule 1 - Page 5 of 5