Amendment #1
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
1. SCHEDULE A, Section 2, AUTOMATIC PORTION REINSURED, shall be replaced by the following:
The portion reinsured with THE REINSURER under this Agreement is known as the YRT Percentage. The YRT
Percentage varies depending on the effective date of the policy as described in the remainder of this
section.
For Policies With Effective Dates Prior to January 19, 2005
US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement, an amount equal to the YRT Percentage
(26.66%) times 50% of the policy risk amount, up to the First Layer of Coverage amounts shown in
Schedule A, Section 5 below.
Example - If the policy risk amount is $40 million, then the automatic portion reinsured under this
Agreement would be $5.332 million (i.e., 26.66% times ($40 million times 50%)).
Non US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement, an amount equal to the YRT Percentage
(8.88%) times 50% of the policy risk amount, up to the First Layer of Coverage amounts shown in Schedule
A, Section 5 below.
For Policies With Effective Dates Between January 19, 2005 and September 27, 2006
US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement, an amount equal to the YRT Percentage
(22.50%) times 50% of the policy risk amount, up to the First Layer of Coverage amounts shown in
Schedule A, Section 5 below.
Example - If the policy risk amount is $40 million, then the automatic portion reinsured under this
Agreement would be $4.5 million (i.e., 22.50% times ($40 million times 50%)).
Non US/Canadian Residents
THE REINSURER will automatically reinsure 0% if the policy risk amount under this Agreement.
For Policies With Effective Dates of September 28, 2006 or Later
US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement, an amount equal to the YRT Percentage
(17.14%) times 50% of the policy risk amount, up to the First Layer of Coverage amounts shown in
Schedule A, Section 5 below.
Example - If the policy risk amount is $40 million, then the automatic portion reinsured under this
Agreement would be $3.428 million (i.e., 17.14% times ($40 million times 50%)).
Non US/Canadian Residents
THE REINSURER will automatically reinsure 0% if the policy risk amount under this Agreement.
2. SCHEDULE A, Section 5, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the face amount will not exceed the
Automatic Issue Limits shown in the following tables:
US/Canadian Residents - No Foreign Travel - Non-Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $60,000,000 $55,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $49,000,000 $44,000,000 $35,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $26,500,000 $23,500,000 $16,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $22,000,000 $19,000,000 $11,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $13,500,000 $11,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $5,350,000 $4,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - No Foreign Travel - Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $50,000,000 $50,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $40,000,000 $40,000,000 $34,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $23,500,000 $23,500,000 $15,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $19,000,000 $19,000,000 $10,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $11,500,000 $10,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $4,350,000 $3,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 6,666,000 $ 5,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 5,000,000 $ 3,333,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== ========= ===================== ================= =====================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance are the
First Layer of Coverage amounts shown in the following tables:
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $50,000,000 $35,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $40,000,000 $25,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $35,000,000 $15,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $15,000,000 $10,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $10,000,000 $ 5,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 5,000,000 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 1,500,000 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 6,666,000 $ 5,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 5,000,000 $ 3,333,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== ========= ===================== ================= =====================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE REINSURER on
that life under this Agreement will not exceed the amounts in the following tables:
For Policies With Effective Dates Prior to January 19, 2005
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $6,665,000 $4,665,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $5,332,000 $3,332,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $4,665,500 $1,999,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $1,999,500 $1,333,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $1,333,000 $666,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $666,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $199,950 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================== ====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
Ages: 18 - 70 $295,970 $222,000 None
--------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
71 - 75 $222,000 $147,985 None
----------- --------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== ========= ===================== ================== ====================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $888,000 $666,000 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $666,000 $444,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== =========== =================== ================== ====================
For Policies With Effective Dates Between January 19, 2005 and September 27, 2006
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $5,625,000 $3,937,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $4,500,000 $2,812,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $3,937,500 $1,687,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $1,687,500 $1,125,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $1,125,000 $562,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $562,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $168,750 None
=========== =============== ========================= =============================
For Policies With Effective Dates of September 28, 2006 or Later
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $4,285,000 $2,999,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $3,428,000 $2,142,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $2,999,500 $1,285,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $1,285,500 $857,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $857,000 $428,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $428,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $128,550 None
=========== =============== ========================= =============================
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and delivered
this Agreement in duplicate on the dates indicated below, with an effective date of
January 19, 2005.
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
Amendment #2
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
2. Section 7, AUTOMATIC REINSURANCE TERMS, shall be replaced by the following:
THE REINSURER agrees to automatically accept contractual risks on the life insurance policies shown in
Schedule A, subject to the following requirements:
a. CONVENTIONAL UNDERWRITING. Automatic reinsurance applies only to insurance applications underwritten by
THE COMPANY according to THE COMPANY's conventional underwriting and issue rules and practices. Upon
request, THE COMPANY shall provide THE REINSURER with a copy of its current underwriting and issue rules
and practices.
From time to time, it may be appropriate for THE COMPANY or THE REINSURER to request of the other party
changes in the underwriting rules and practices. The party requesting the change must provide a 120-day
advance written notice to the other party before the effective date of such change. Recognition of
reinsurance premium rates related to these changes must be determined within the 120-day period. If the
underwriting change or rate change is unacceptable to either party, this Agreement may be unilaterally
terminated for acceptance of new business with a 90-day written termination notice to the other party.
b. RESIDENCE AND TRAVEL. To be eligible for automatic reinsurance, each insured must either be a resident
of the United States or Canada at the time of issue or be a resident of another country that meets THE
COMPANY's special underwriting requirements pertaining to foreign residence.
Applications with Foreign Travel qualify for automatic reinsurance except when such travel is to a
country specifically not allowed under THE COMPANY's foreign travel requirements. "Foreign Travel" is
defined as no more than three months outside the United States or Canada.
c. OCCUPATION. To be eligible for automatic reinsurance, the insured must not be employed in an occupation
as shown in the Occupation Exclusion List in Schedule A.
f. AUTOMATIC ACCEPTANCE LIMIT. For any policy to be reinsured under automatic reinsurance, the face amount
shall not exceed the Automatic Acceptance Limit as shown in Schedule A.
g. JUMBO LIMIT. For any policy to be reinsured under automatic reinsurance, the total amount of insurance
in force and applied for in all companies shall not exceed the Jumbo Limit as shown in Schedule A.
h. MINIMUM CESSION. The minimum amount of reinsurance per cession that THE REINSURER will accept is shown
in Schedule A.
i. FACULTATIVE QUOTES. The risk shall not have been submitted on a facultative basis to THE REINSURER or
any other reinsurer.
3. SCHEDULE A, Section 5, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the face amount will not exceed the Automatic
Issue Limits shown in the following tables:
US/Canadian Residents - Non-Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $60,000,000 $55,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $49,000,000 $44,000,000 $35,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $26,500,000 $23,500,000 $16,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $22,000,000 $19,000,000 $11,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $13,500,000 $11,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $5,350,000 $4,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $50,000,000 $50,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $40,000,000 $40,000,000 $34,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $23,500,000 $23,500,000 $15,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $19,000,000 $19,000,000 $10,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $11,500,000 $10,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $4,350,000 $3,350,000 None
=========== =============== ========================= ============================= ============================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance are the First
Layer of Coverage amounts shown in the following tables:
US/Canadian Residents
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $50,000,000 $35,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $40,000,000 $25,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $35,000,000 $15,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $15,000,000 $10,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $10,000,000 $ 5,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 5,000,000 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 1,500,000 None
=========== =============== ========================= =============================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
▇▇ - ▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE REINSURER on that
life under this Agreement will not exceed the amounts in the following tables:
US/Canadian Residents
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $4,285,000 $2,999,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $3,428,000 $2,142,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $2,999,500 $1,285,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $1,285,500 $857,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $857,000 $428,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $428,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $128,550 None
=========== =============== ========================= =============================
3. SCHEDULE A, Section 6, JUMBO LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the total amount of insurance in force and
applied for in all companies will not exceed the amounts in the following tables:
US/Canadian Residents
===================== ===================== =================== ===================
No Substandard Class A - D Class E - H
Rating
--------------------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
Ages: 18 - 80 $65,000,000 $65,000,000 $65,000,000
----------- --------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
81 - 85 $30,000,000 $30,000,000 $30,000,000
----------- --------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
86 - 90 $10,000,000 $10,000,000 $10,000,000
=========== ========= ===================== =================== ===================
Note: When a policy is reinsured under automatic reinsurance and the total amount in force and applied for
in all companies, of which THE COMPANY is aware, exceeds $50,000,000, THE REINSURER must be notified and THE
COMPANY shall provide the amount being issued.
Non US/Canadian Residents
===================== ===================== =================== ===================
No Substandard Class A - D Class E - H
Rating
--------------------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
Ages: 18 - 75 $35,000,000 $35,000,000 $35,000,000
=========== ========= ===================== =================== ===================
4. SCHEDULE A, Section 8, FOREIGN TRAVEL EXCLUSIONS is deleted from this Agreement.
5. SCHEDULE A, Section 9, FOREIGN RESIDENCE EXCLUSIONS is deleted from this Agreement.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and delivered
this Agreement in duplicate on the dates indicated below, with an effective date of
December 1, 2007.
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
Amendment #3
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE January 19, 2005
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
1. Section 22, RECAPTURE, shall be replaced by the following:
RECAPTURE
At any time during the term of the Agreement, THE COMPANY may elect to recapture in full the coverage
reinsured under this Agreement for no additional recapture fee or settlement in the event of the
occurrence of any of the following.
a) Non-payment of reinsurance claims that are sixty (60) days past due from THE REINSURER provided
that (i) the claims are not in dispute; (ii) THE COMPANY is current on its reporting and premium
payments for policies reinsured under this Agreement; (iii) THE COMPANY has provided claim proofs
and relevant documentation requested by THE REINSURER; and (iv) THE COMPANY provides THE REINSURER
with 30- day prior written notice of its intent to recapture sent by certified mail to THE
REINSURER's General Counsel and the claim payment is not received within that 30- day period.
If THE REINSURER pays a claim solely to avoid recapture, THE REINSURER will maintain the right to
review and dispute the claim and obtain reimbursement of such payment if the parties agree or an
arbitration panel determines the claim is not covered by this Agreement. This right will have no
time limit. THE REINSURER and THE COMPANY agree to act in utmost good faith regarding such
matters.
b) Any action taken by THE REINSURER or any action failed to be taken by THE REINSURER that
results in THE COMPANY not being able to take the maximum credit for the reinsurance provided under
this Agreement on its statutory financial statements in its state of domicile provided that if the
parties do not agree that THE REINSURER's action or inaction is the cause of THE COMPANY's
inability to take credit for the reinsurance provided by this Agreement the issue shall be
submitted to arbitration in accordance with the provisions of Section 26 of this Agreement.
c) THE REINSURER no longer has an information security program that meets the requirements of the
Gramm ▇▇▇▇▇ ▇▇▇▇▇▇ Act for the handling of Personal Information or THE REINSURER is unable to
prevent a recurrence of a Security Incident, as described in the subsection of the 'CONFIDENTIALITY
AND PRIVACY OF PERSONAL INFORMATION' provision entitled 'Confidentiality of Personal Information'.
d) THE REINSURER is deemed insolvent as described in Section 25.
e) A change in reinsurance premium rates that is unacceptable to THE COMPANY.
f) The assignment of THE REINSURER's rights and obligations under this Agreement to another
unaffiliated party without the consent of THE COMPANY, which shall not be withheld unreasonably.
In addition, at any time after the twentieth policy anniversary, THE COMPANY may elect to recapture all
or an appropriate portion of the coverage reinsured under this Agreement to reflect increases in the
maximum retention limits for THE COMPANY and all of its affiliates, collectively, subsequent to the date
of policy issue. These maximum retention limits as of the effective date of this Agreement are equal to
the amounts shown in the Risk Retention Limits table shown in Schedule A. The portion of the coverage
that may be recaptured must be directly related to the increase in the limits. To illustrate, if the
maximum retention limits are increased by 100%, then the portion that may be recaptured from all
reinsurers of the policies reinsured under this Agreement would be equal to 100% of the portion of each
reinsured policy that is retained by THE COMPANY. Furthermore, the portion that may be recaptured from
THE REINSURER would be determined as THE REINSURER's prorata share of the total portion reinsured with
all reinsurers.
If THE COMPANY elects to recapture the risks ceded to THE REINSURER under this Agreement as stated
above, it will do so by giving written notice to THE REINSURER's General Counsel. Upon the delivery of
such notice, all of the risks previously ceded under each of the policies subject to this Agreement
shall be recaptured, effective as of the date specified in THE COMPANY's notice. If THE COMPANY does
not specify in the written notice the date that such recapture is to be effective, then the recapture
shall be effective immediately upon THE REINSURER's receipt of the notice.
If a policy is recaptured, THE REINSURER will pay THE COMPANY the unearned reinsurance premium within
thirty (30) days following the date of recapture. THE REINSURER shall not be liable, under this
Agreement, for any claims incurred after the date of recapture, but shall remain liable for all claims
incurred on or prior to the date of recapture.
2. Section 29, CONFIDENTIALITY, shall be replaced by the following:
CONFIDENTIALITY AND PRIVACY OF PERSONAL INFORMATION
Confidentiality of Confidential Information
"Confidential Information" includes, but is not limited to any and all financial data, statistics,
programs, research, developments, information relating to either party's insurance and financial
products, planned or existing computer systems architecture and software, data, product pricing and
underwriting systems and processes and information of either party as well as third party confidential
information to which either party has access. Notwithstanding the foregoing, Confidential Information
does not include any information which (a) was rightfully known to or already in the possession of the
receiving party prior to disclosure, (b) becomes part of the public domain without breach of this
Agreement by the receiving party, (c) was independently developed by the receiving party or any of its
employees without references to or use of the disclosing party's Confidential Information, (d) a third
party rightfully disclosed to the receiving party without violating any obligations of confidence, or
(e) falls under the definition of Personal Information as described in the Confidentiality of Personal
Information section below.
(a). Protection of Confidential Information. The receiving party shall (i) not copy the Confidential
Information except as necessary for the purpose of internal administration of this Agreement (ii) not
publish, disseminate or otherwise disclose the Confidential Information to any third party, other than
its employees, agents or independent contractors with a need to know and who are bound by similar
confidentiality obligations (iii) not use the Confidential Information in any fashion except for
purposes of fulfilling the obligations under this Agreement and (iv) take steps consistent with its
protection of its own confidential and proprietary information (but in no event exercise less than
reasonable care) to prevent unauthorized disclosure of the Confidential Information.
(b). Disclosure of Confidential Information. Notwithstanding the requirements above, the receiving
party may disclose Confidential Information of the disclosing party as may be required by law (including
court order or subpoena or regulatory requirement), provided that the receiving party shall use best
efforts to (i) provide the disclosing party at least ten (10) days prior written notice before
disclosing such information, but in any event shall provide such notice to the disclosing party as soon
as reasonably practicable and (ii) cooperate with the efforts of the disclosing party to preserve the
confidentiality of the Confidential Information to the fullest extent permitted by law.
(c). Non-Disclosure of Agreement Terms. Neither party shall disclose the terms and conditions of this
Agreement without the prior written consent of the other party, except that each party may (1) make
such disclosures as are necessary to comply with applicable laws, rules and regulations or regulatory
requirements or as necessary to enforce this Agreement and (2) disclose the terms of this Agreement to
(A) such party's auditors, attorneys, bankers or investment bankers, as necessary for their rendition of
services to a party and (B) investors, potential investors and their accountants, retrocessionaires, tax
advisors, counsel, and bankers, provided any such third party is subject to an obligation of
confidentiality and non-use with respect to the terms of this Agreement.
(d). Mutual Cooperation. Each party shall notify promptly and cooperate with the other party in
enforcing the disclosing party's rights if such party becomes aware of a threatened or actual violation
of the confidentiality requirements set forth herein. Upon reasonable request by the disclosing party,
the receiving party shall provide copies of the confidentiality agreements entered into with its agents
or independent contractors.
(e). Injunctive Relief. Each party acknowledges that the disclosure or use of the other party's
Confidential Information in violation of this Agreement could cause or threaten irreparable harm to such
other party for which monetary damages may be difficult to ascertain or provide an inadequate remedy.
Each party therefore agrees that the other party, in addition to any other rights and remedies to which
such other party may be entitled under this Agreement or by law, shall be entitled to seek injunctive or
other equitable relief for any violation of this Article.
(f). Destruction of Confidential Information. Upon termination of this Agreement, all parties to this
Agreement shall destroy all Confidential Information, except for Confidential Information legally
required to be maintained or required to be maintained pursuant to its record retention requirements.
Upon written request, each party will provide all other parties a letter signed by an officer of such
party that certifies such party has either destroyed or is retaining applicable Confidential
Information, and, if retained, when such Confidential Information will be destroyed.
Confidentiality of Personal Information
"Personal Information," which means information provided by or at the direction of THE COMPANY, or to
which access was provided in the course of THE REINSURER's performance of its obligations under this
Agreements that (i) identifies an individual (by name, signature, address, telephone number or other
unique identifier), or (ii) that can be used to authenticate that individual (including, without
limitation, passwords or PINs, biometric data, unique identification numbers, answers to security
questions, or other personal identifiers). An individual's social security number, even in isolation,
is Personal Information. THE COMPANY's business contact information is not by itself Personal
Information.
(a). Protection of Personal Information - The REINSURER acknowledges that in the course of its
engagement by THE COMPANY, THE REINSURER may receive or have access to Personal Information. In
recognition of the foregoing, THE REINSURER covenants and agrees that:
i. It will keep and maintain all Personal Information in strict confidence, using such degree of
care as is appropriate to avoid unauthorized use or disclosure;
ii. It will use and disclose Personal Information solely for the purposes for which such
information, or access to it, is provided pursuant to the terms of this Agreement, and will not
use or disclose such information for THE REINSURER's own purposes or for the benefit of anyone
other than THE COMPANY;
iii. It will not, directly or indirectly, disclose Personal Information to anyone outside THE
COMPANY, except retrocessionaires, advisors or agents of THE REINSURER who have a need to know
such Personal Information in the ordinary course of THE REINSURER's performance of its
obligation under the Agreement or with THE COMPANY's prior written consent as permitted under
the terms of this Agreement; and
(b). Disposal of Personal Information - It shall, upon the earlier of (i) completion of an engagement or
termination of this Agreement, (ii) determination that it has no need for Personal Information, or (iii)
at any time THE COMPANY requests, dispose of all records, electronic or otherwise (including all backup
records and/or other copies thereof) regarding or including any Personal Information that THE REINSURER
may then possess or control except as may be required to be retained in accordance with THE REINSURER's
obligations under this Agreement or Document Retention Policy (Personal Information retained in
connection with this policy will continue to be subject to any duties of confidentiality imposed by this
Agreement or as otherwise required by law). Disposal may be achieved, at THE COMPANY's option, through
prompt delivery of the records to THE COMPANY or destruction pursuant to THE REINSURER's written policy
governing such destruction and in a manner that renders the records unreadable and undecipherable by any
means. Upon any occurrence of (a), (b), or (c) above, an authorized officer of THE REINSURER shall
promptly certify in writing to THE COMPANY, that all such Personal Information has been destroyed or
returned.
(c). Disclosure of Personal Information - THE REINSURER shall be permitted to disclose Personal
Information only to its employees and permitted subcontractors (individually an "Employee" and
collectively, "Employees"), retrocessionaires, advisors, or agents having a need to know such
information in connection with the performance of its obligations under this Agreement. THE REINSURER
shall instruct all Employees who have access to Personal Information as to their obligations under this
Agreement and any retrocessionaires, advisors or agents of THE REINSURER receiving Personal Information
shall be subject to a contractual obligation of confidentiality and non-use with respect to the terms of
this Agreement. THE REINSURER shall be responsible for all Employees' compliance with the terms of this
Agreement. Further, to facilitate performance of the services under this Agreement and to the extent
permitted by law, THE REINSURER may disclose such Personal Information 1) to auditors during the course
of external audits, 2) as required or permitted by an arbitration panel or actuary deciding a dispute
arising under this Agreement, 3) as required by applicable law, court order or by any legitimate
regulatory authority, or 4) to consult any tax advisor regarding the U. S. federal income tax treatment
or tax structure of this transaction. If THE REINSURER is required by law to disclose Personal
Information, THE REINSURER shall promptly notify THE COMPANY in writing in advance of such disclosure,
and reasonably cooperate with THE COMPANY's efforts to obtain an appropriate order related to the
disclosed materials.
(d). Injunctive Relief - THE REINSURER acknowledges that the unauthorized disclosure of Personal
Information may cause irreparable injury to THE COMPANY and damages, which may be difficult to
ascertain. Therefore, THE COMPANY shall, upon a disclosure or threatened disclosure of any Personal
Information, be entitled to equitable relief including injunction and specific performance as a remedy
for a threatened or actual unauthorized disclosure of Personal Information.
(e). Mutual Cooperation - THE REINSURER shall advise THE COMPANY of any known attempts to obtain
unauthorized access to Personal Information within twenty four (24) hours of learning of the attempts.
THE REINSURER shall notify THE COMPANY, promptly and without unreasonable delay, but in no event more
than twenty four (24) hours of learning that unauthorized access to, disclosure of, or breach in the
security of Personal Information (a "Security Incident") may have occurred. Thereafter, THE REINSURER
shall, at its own cost and expense:
i. Promptly furnish to THE COMPANY full details of the Security Incident;
ii. Assist and cooperate fully with THE COMPANY in THE COMPANY's investigation of THE REINSURER,
Employees or third parties related to the Security Incident, including but not limited to providing
THE COMPANY with reasonable physical access to the facilities and operations affected, facilitating
interviews with employees and others involved in the matter, and making available all relevant
records, logs, files, and data;
iii. Cooperate with THE COMPANY in any litigation or other formal action against third parties
deemed necessary by THE COMPANY to protect its rights; and
iv. Promptly use its best efforts to prevent a recurrence of any such Security Incident.
(f). Compliance by THE REINSURER - THE REINSURER certifies that its treatment of Personal Information is
in compliance with applicable laws and/or regulations with respect to privacy and data security and that
it has implemented and currently maintains an information security program that includes administrative,
technical, and physical safeguards to (i) ensure the security and confidentiality of Personal
Information, (ii) to protect against any anticipated threats or hazards to the security or integrity of
such Personal Information and (iii) to protect against unauthorized access to, destruction,
modification, disclosure or use of Personal Information which could result in substantial harm or
inconvenience to THE COMPANY, or to any person who may be identified by such Personal Information. THE
COMPANY may request that THE REINSURER certify in writing its material compliance with this Section (f)
from time to time, but no more frequently than semiannually or as the parties mutually agree.
If THE REINSURER no longer has an information security program that meets the requirements of the Gramm
▇▇▇▇▇ ▇▇▇▇▇▇ Act for the handling of Personal Information or THE REINSURER is unable to prevent a
recurrence of a Security Incident as described above, THE COMPANY reserves the right to terminate this
agreement for new business and/or recapture all inforce business immediately upon written notice to THE
REINSURER.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of October 1,
2007.
PRUCO LIFE INSURANCE COMPANY TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By:____________________________________ By:____________________________________
Title:___________________________________ Title:___________________________________
Date:___________________________________ Date:___________________________________
By:____________________________________ By:____________________________________
Title:___________________________________ Title:___________________________________
Date:___________________________________ Date:___________________________________