Exhibit 7(d)
8145-01-00
ADDENDUM
to the
AUTOMATIC AND FACULTATIVE YRT REINSURANCE AGREEMENT DATED AUGUST 1, 2001
between
PROVIDENT MUTUAL LIFE INSURANCE COMPANY, BERWYN, PENNSYLVANIA, USA
(hereinafter called the "Ceding Company")
and
PROVIDENT MUTUAL LIFE AND ANNUITY COMPANY OF AMERICA,
PHILADELPHIA, PENNSYLVANIA, USA
(hereinafter called the "Ceding Company")
and
RGA REINSURANCE COMPANY, ST. LOUIS, MISSOURI, USA
(hereinafter called the "Reinsurer")
THIS ADDENDUM IS EFFECTIVE OCTOBER 1, 2001
I. ADDITION OF THE EXPANDED STANDARD PROGRAM
As of the effective date of this Addendum, the attached Schedule III,
Business Covered, is hereby revised and added to this Agreement. The
revised Schedule III now includes the Expanded Standard Program for
business.
The attached Exhibit A, Expanded Standard Program, is hereby added to this
Agreement which includes the guidelines, rates, and pay percentages for
the program.
II. REINSURANCE BASIS IS REVISED
As of the effective date of this Addendum, the Reinsurance basis under
this Agreement is changed to First-Dollar Quota Share with 20% retained by
the Ceding Company for policies over $100,000. The Ceding Company will
fully retain all policies up to $100,000.
III. All provisions of the Automatic and Facultative YRT Reinsurance Agreement
not specifically modified herein remain unchanged.
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IN WITNESS WHEREOF, all parties have executed this Addendum in duplicate as
follows:
PROVIDENT MUTUAL LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------- -----------------------------
Title: Vice President & Actuary Title: Executive Vice President &
------------------------- Chief Actuary
---------------------------
Date: 11-27-2001 Date: 11-27-2001
------------------------- ---------------------------
PROVIDENT MUTUAL LIFE AND ANNUITY COMPANY OF AMERICA
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------- -----------------------------
Title: Vice President & Actuary Title: Vice President & Actuary
------------------------- ---------------------------
Date: 11-27-2001 Date: 11-27-2001
------------------------- ---------------------------
RGA REINSURANCE COMPANY
By: /s/ Illegible
--------------------------
Title: Vice President
------------------------
Date: 9-27-01
------------------------
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SCHEDULE III - BUSINESS COVERED
PLAN(S)
EFFECTIVE AUGUST 1, 2001
Options Premier
Whole Life II
Portfolio II
Special Term
ProvFlex UL
EFFECTIVE OCTOBER 1, 2001
Expanded Standard Program (See Exhibit A)
RIDER(S)
Additional Insurance Benefit Rider
Other Insured Term Rider
Waiver of Premium Rider
Waiver of Monthly Deductions Rider
Change of Insured Rider
Guaranteed Purchase Option Rider
Long Term Care Acceleration Benefit Rider
Long Term Care Waiver Rider
Accelerated Death Benefit Rider
Paid Up Additions Rider
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EXHIBIT A - EXPANDED STANDARD PROGRAM
EFFECTIVE OCTOBER 1, 2001
GUIDELINES:
1. Business eligible for standard issue that is medically impaired up to
200% mortality. The underwriting assessment is arrived at by
conventional underwriting practices using the underwriting manual used
by the Ceding Company.
2. Subjective type risks (habits, morals, financial problems, etc.) and
Medical risks involving flat extras are excluded.
3. No term or survivorship policies are included. No prior facultative
coverage.
4. Issue ages through 65.
5. Minimum Issue Amounts: Ages 0-49 $100,000
50-65 50,000
6. Maximum face amount: $2,000,000
7. Each case is split equally between 3 Reinsurers and the Ceding Company.
The Ceding Company will keep up to $500,000 subject to its normal
retention. If the Ceding Company cannot retain its share, the remaining
amount is split equally with the 3 Reinsurers in this pool.
8. The renewal rates are as follows. These rates are percentages of the
S-1 Rate Table found in the Base agreement. First year rates are zero.
NONSMOKER SMOKER
--------- ------
73% 130%
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